Amid Hindenburg Row, LIC Increased Stake In Four Adani Group Firms In Final Quarter Of FY23: Report

India's largest insurer Life Insurance Corporation (LIC) reportedly increased its stakes in stocks of four Adani Group companies in the final quarter of financial year 2022-23 amid the sell-off crisis in the Group triggered by Hindenburg report.

In the March quarter, the state-run insurer increased its stakes in Adani Green Energy, Adani Total Gas, Adani Enterprises, and Adani Transmission. However, it reduced its stakes in Ambuja Cements and Adani Ports & Special Economic Zone.

The shareholding in the case of ACC remained same at 1,20,33,771 shares or 6.41 per cent at the end of the March quarter.

LIC's stake in Adani Enterprise saw an increase from 4.23 per cent in December last year to 4.26 per cent at the end of March this year, according to stock exchange data cited by Livemint.

The institutional investor reportedly owned 2,14,70,716 shares in Adani Green Energy, making up a 1.36 per cent stake as of 31 March 2023, which was 8 basis points more than the 1.28 per cent stake held in the firm by it as of 31 December last year.

Further, the Insurance giant increased its stake in Adani Total Gas by 6 basis points to 6.02 per cent from 5.96 per cent in December quarter.

During the quarter gone by, LIC slightly reduced its holdings in two Adani group stocks: Adani Ports and Special Economic Zone (from 9.14 per cent to 9.12 per cent), and Ambuja Cements (from 6.33 per cent to 6.3 per cent).

Earlier last month, Finance Minister Nirmala Sitharaman had informed the Lok Sabha that LIC's debt exposure in Adani group companies decreased slightly to Rs 6,183 crore as of 5 March 2022, from Rs 6,347 crore as of 31 December 2021.

As per the written reply to the Lok Sabha, LIC's debt exposure in Adani Ports and SEZ as of 5 March amounted to Rs 5,388.60 crore.

The company's debt exposure in various Adani Power projects, included Rs 266 crore in Adani Power (Mundra), Rs 81.6 crore in Adani Power Maharashtra Ltd - Phase I, Rs 254.87 crore in Adani Power Maharashtra Ltd - Phase III, Rs 45 crore in Raigarh Energy Generation Ltd, and Rs 145.67 crore in Raipur Energen Ltd.

Hindenburg Research, a US-based short seller, had earlier in January accused Adani group of share-price manipulation among other things, causing a decline in the shares of the group's companies.

The group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.