Life Insurance Corporation (LIC), a state-owned insurer, stated on Monday that its exposure to all Adani Group firms amounts to less than 1% of its total assets under management (AUM) at book value. According to a press statement from LIC, as of December 31, 2022, its exposure to the Adani Group of Companies in the equity and debt divisions is Rs 35,917.31 crores.
According to the insurer, the market value of the same was Rs 56,142 crores on January 27, 2023, at the close of business.
LIC clarifies: Its total exposure in LIC Company is less than 1 percent
Stocks of the Adani Group company have fallen as a result of a report by US-based short seller Hindenburg Research. Adani Group was accused by Hindenburg Research of engaging in “a flagrant stock manipulation and accounting fraud scheme.” Additionally, it accused the conglomerate of using offshore tax havens improperly and raised red flags regarding the group’s large debt.
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LIC releases information on factual position regarding exposure in Adani group in Equity and Debt segments
LIC states
“In the ordinary course of business, LIC does not share details of its company and industrial group specific investments. However, given that certain information is being circulated in the various articles in media and Video Channels about LIC’s exposure to Adani Group of companies, we are releasing this information to share the factual position regarding our exposure in Adani group of companies in the equity and debt segments.”
LIC in its statement stated
“LIC’s total holding under equity and debt is Rs 35,917.31 crore as on December 31, 2022 under Adani Group of companies. The total purchase value of equity, purchased over the last many years, under all Adani Group companies is Rs 30,127 crore and the market value for the same as at close of market hours on January 27, 2023 was Rs 56,142 crore. The total amount invested under Adani Group amounts to Rs 36,474.78 crore as on date. These investments have however been made over a period,”
As of September 30, 2022, LIC had about Rs 41.66 lakh crore in assets under management. As a result, according to the state insurer, LIC’s exposure to the Adani group as of today is 0.975% of LIC’s entire AUM at book value.
LIC furthmore added,
“Further, it may be appreciated that the credit rating of all of the Adani debt securities held by LIC are AA and above which is in compliance with the IRDAI investment regulations as applicable to all the life insurance companies,”
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