Hindenburg debacle: LIC invests ₹30,000 crore in Adani shares at a loss

After the release of the Hindenburg Report, LIC said on January 30 that this is 35,917 crore under equity and debt at the end of December Adani Group Shares, It states that the total purchase price of equity under all Adani Group companies is 30,127 crore and the market value for the same as on January 27, 2023 was 56,142 crore.

The combined market value of the group’s 10 listed companies has plummeted by $146 billion, or nearly 60%, since US-based short seller Hindenburg released its report a month ago, alleging accounting fraud and stock manipulation. Adani has denied the allegations.

With Thursday’s fall, the value of LIC’s investment has turned negative, meaning it has made a loss on its investment. Note that the assumption is that LIC has not bought or sold stake in group companies since January 30.

LIC’s stake in Adani group companies –

In flagship Adani Enterprises Limited, LIC holds 4,81,74,654 shares, which is 4.23% of the total paid-up capital of the company as on December 2022. The insurance giant holds 9.14% stake in Adani Ports, 3.65% in Adani Transmission. 1.28% stake in Adani Green and 5.96% stake in Adani Total Gas till December. LIC’s total asset under management (AUM) stands at 41.66 lakh crore by September 30, 2022.

The fall in stocks has led to a sharp decline in stocks Gautam AdaniAccording to the Bloomberg Billionaires Index, has a net worth of $42.7 billion. He has dropped from the list of second richest people in the world last year to 29th place in the list of world’s richest people. Gautam Adani is the founder of the Ahmedabad-based conglomerate Adani Group. The Group’s interests include infrastructure, commodities, power generation, transmission, real estate and cement.