LIC's share value in Adani group stocks fell by Rs 16,000 crore following the massive drop in the conglomerate's share price in the wake of the scathing Hindenburg report. Sources at LIC however told CNBC-TV18 that the insurer has not sold any shares in today's fall and there is "no panic" around Adani Group.

Moreover, LIC is planning to plough in Rs 300 crores into Adani Enterprises' new share sale in the follow-on public offering (FPO), according to a filing. This would increase its stake from its current holding of 4.23%.

Shares of Adani Group's seven listed companies fell by Rs 4 lakh crore ($5.4 billion) in just two days, ending the trading day with cuts anywhere between 5 percent to 20 percent.

The fall in Adani's stocks also had a collateral impact on India's largest life insurer, Life Insurance Corporation of India (LIC). LIC, which is also the country's largest institutional investor, has a significant holding in almost all Adani Group companies. LIC holds a 4 percent stake in the flagship Adani Enterprises, a 9 percent stake in Adani Ports, and over 6 percent stake in both ACC and Ambuja Cement.

The mark to market value of LIC's investment book dropped by over Rs 16,200 crore ($2.17 billion) today due to the fall in Adani Group stocks. As per Friday's closing, the value of LIC's investments in Adani Group stocks stood at Rs 76,800 crore ($10.2 billion). The value of LIC's investments fell the most in Ambuja Cement followed by Adani Total and Adani Ports.

Hindenburg has alleged market manipulation, accounting fraud and use of offshore shell companies for money laundering in Adani group companies. The conglomerate has however denied these allegations and is considering taking legal action against the short-seller.

Also read: SBI says not concerned about Adani Group's debt serviceability

(Edited by : Anan)

First Published:Jan 27, 2023 9:08 PM IST