Among LIC’s investments in the group, Adani Green and Adani Ports show the most significant appreciation in value during the financial year 2023-24
Life Insurance Corporation of India’s (LIC) investments in seven Adani Group companies have surged a whopping 70 per cent. LIC’s investments in Adani companies have now surged to Rs 61,657 crore, compared with Rs 36,089 crore as of March 31, 2023.
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Among LIC’s investments in the group, Adani Green and Adani Ports show the most significant appreciation in value during the financial year 2023-24. Adani Green surged 114 per cent, with LIC’s investments rising from Rs 1,892 crore at FY23’s end to Rs 4,045 crore currently.
Likewise, LIC’s investments in Adani Ports surged 113 per cent, growing from Rs 10,727 crore at FY23’s end to Rs 22,819 crore today, reflecting a substantial appreciation.
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The value of LIC’s investment in Adani Enterprise Ltd soared from Rs 8,495.31 crore as on March 31, 2023, to Rs 14,305.53 crore a year later, the data showed.
LIC’s investment in Adani Green Energy Ltd saw the biggest rise with value more than doubling to Rs 3,937.62 crore in one year. The insurer also saw value appreciation in its investments in Adani Total Gas Ltd, Ambuja Cements and ACC.
Last year, the insurance giant faced intense scrutiny over its decision to invest in the Adani group amidst a political slugfest after allegations of stock manipulation fuelled by the Hindenburg report. Adani group denied any wrongdoing.
Adani Group’s stocks, which at its lowest point took a beating of about $150 billion, have staged a remarkable comeback, fuelled by robust profit growth across its diverse businesses. Facing political pressure, LIC strategically reduced its exposure to two of the group’s flagship companies — Adani Ports & SEZ and Adani Enterprises — only to witness their shares surge by an impressive 83 per cent and 68.4 per cent, respectively.
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Despite trimming its ownership, LIC investments saw a 59 per cent surge in value in FY24, according to stock exchange data. While the domestic investor faced pressure, overseas investors wasted no time seizing the opportunity, with heavyweights like the Qatar Investment Authority, Abu Dhabi-based IHC, French giant TotalEnergies, and US-based GQG Investment, collectively pouring close to Rs 45,000 crore into Adani stocks.
In the year since the Hindenburg report, Adani has cemented its status as India’s premier and leading infrastructure conglomerate, with a laser focus on spearheading the nation’s green energy transition alongside a formidable presence in critical sectors such as airports, ports, data centres, and roads.
