Ahmedabad: Information has come out that debunks the allegations of loss from the investment of the public sector insurance company LIC in the Adani Group. According to recently released results, LIC has registered a profit of 59 percent on the value of its investment in Adani group companies in the financial year 2023-24. According to stock market data, LIC’s total investment in seven Adani Group companies as on March 31, 2023 stood at Rs. 38,471 crore to Rs.61,210 crore as on March 31, 2024. In which Rs. An increase of 22,378 crores was recorded.
Last year, the insurer faced accusations over its decision to invest in the Adani group following unsubstantiated allegations made by short-seller Hindenburg. However, the Adani group dismissed the report as completely false. Later the court also dismissed Hindenburg’s allegations as false. Facing political pressure, LIC strategically reduced its investments in two major group companies-Adani Ports & SEZ and Adani Enterprises. However, the shares of these two companies rose by 83 percent and 68.4 percent respectively.
The Supreme Court ordered an expert panel and market regulator Sebi to conduct a thorough probe into the fall in Adani Group’s shares. After that, most of the shares of the group reached the upper circuit and the rest of the shares also rose sharply. Shares of Adani group staged a strong comeback after being influenced by US short seller Hindenburg’s report.
According to stock market figures, LIC made a profit of 59 per cent on its investment in Adani group in FY 2023-24, despite disinvestment. During this period several foreign investors such as Qatar Investment Authority, Abu Dhabi-based IHC, French giant Total Energy and US-based GQG Investments invested in Adani group companies of around Rs. 45,000 crore had been invested.
Looking at sharemarket figures, LIC’s investment in Adani Enterprises Limited as on March 31, 2023 was valued at Rs. 8,495.31 crores to Rs. 14,305.53 crores. So during the same period the investment in Adani Ports and SEZ was Rs. 12,450.09 crore to Rs. 22,776.89 crores. LIC’s investment in Adani Green Energy Limited more than doubled in a year to Rs. 3,937.62 crores.
