LIC continues to bet big on Adani; remains in green despite share price rout

The shares that LIC picked totalled 5% of the stocks reserved for anchor investors

January 30, 2023 12:19 am | Updated 04:17 pm IST - NEW DELHI

Life Insurance Corporation (LIC) is ploughing more money into Adani group's flagship firm as it continues to be a net gainer despite the plunge in stock prices following a short seller's fraud allegations, filings and stock market data showed.

India's largest life insurer, invested about ₹300 crore in buying 9,15,748 more shares as an anchor investor in a ₹20,000 crore new share sale by Adani Enterprises Limited (AEL), according to a stock exchange filing of AEL.

The shares that LIC picked totalled 5% of the stocks reserved for anchor investors.

In all, 33 institutional investors put in ₹5,985 crore as anchor investors in AEL. LIC already had 4.23% stake in AEL, just like it has holding in other six listed companies of the Adani Group.

According to stock exchange information, LIC made a total investment of ₹28,400 crore in Adani shares over the last few years. The value of the shares was ₹72,200 crore before the report of the U.S. short seller triggered a stock price crash over the last two trading sessions.

The value of shares that LIC holds in Adani group companies fell to ₹55,700 crore but it still is a net gainer by ₹27,300 crore over its original investment.

LIC holds 9% in Adani Ports and Special Economic Zone, 3.7% in Adani Transmission, 1.3% in Adani Green Energy and 6% in Adani Total Gas Limited.

Other investors who formed part of the anchor investors in AEL's follow-on public offer included Abu Dhabi Investment Authority and Al Mehwar Commercial Investment LLC.

AEL in the stock exchange filing, said the FPO committee of its board of directors has finalised allocation of 1.82 crore shares to anchor investors at ₹3,276 apiece, of which ₹1,638 per share will be paid by now and the rest in subsequent calls.

Also Read | Warning bells: On the Adani saga

Top News Today


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.