Life Insurance Corporation (LIC) said on Monday that its total exposure to Adani Group companies is less than 1% of its total assets under management (AUM) at book value.
It said in a press release that the total value of the Adani group shares it purchased over the past many years is Rs 30,127 crore. This amounts to a market value of Rs 56,142 crore, based on the closing price on January 27.
The clarification came as Adani Group firms have been battered due to a scathing report on the conglomerate by US short-seller Hindenburg Research.
LIC’s total holding under equity and debt was Rs 35,917.31 crore as on December 31, 2022 in Adani Group.
The total purchase value of equity was Rs 30,127 crore and the market value for the same at the close of market hours on January 27 was Rs 56,142 crore. The total amount invested in Adani Group amounts to Rs 36,474.78 crore as on date.
The LIC said the credit rating of the Adani debt securities held by it is AA and above, which is in compliance with the IRDAI investment regulations as applicable to all life insurance companies.
This exposure of the LIC to Adani Group as on date is 0.975% of the total assets under management (AUM) at book value, it said.
Meanwhile, LIC managing director Raj Kumar told Reuters that it is reviewing the group’s response to the Hindenburg report and will hold talks with its management within days.
“Presently, there is a situation that’s emerging and we are not sure what is the factual position … Since we are a large investor we have the right to ask relevant questions and we will definitely engage with them,” Kumar said.
“Of course, we are studying the 413-page reply given by Adani Group,” Kumar said. “We will also see if the concerns are addressed. If we believe the concerns are not addressed, we will seek further clarification from them,” he added.