The Life Insurance Corporation of India (LIC) experienced a notional loss of Rs 8,566 crore on its investments in seven Adani group companies following a significant drop in their stock prices, which fell by as much as 24%. This decline came after US prosecutors indicted billionaire Gautam Adani and seven other senior executives for their alleged involvement in a $250 million bribery scheme that was purportedly concealed from American investors.
As of the latest trading session, LIC's holdings in Adani stocks were valued at Rs 46,294 crore, down from Rs 54,861 crore earlier in the week, according to data from AceEquity. Stock exchanges were closed the previous day due to elections in Maharashtra. LIC holds varying stakes in several Adani companies, including ACC Ltd, Adani Total Gas Ltd, and Adani Ports and Special Economic Zone Ltd.
Reports indicate that arrest warrants have been issued for Gautam Adani and his nephew Sagar, with plans to deliver these warrants to international law enforcement agencies. The Adani group has dismissed the allegations as unfounded.
In terms of stock performance, ACC saw a decrease of 7.92% to Rs 2,011.90, while LIC holds a 6.39% stake in the company. Adani Total Gas shares dropped 10.40% to Rs 602.35, with LIC owning 6.02% of this firm as of September 30. Similarly, Adani Energy Solutions Ltd plummeted by 20% to Rs 697.70, where LIC's stake was recorded at 2.78%. Ambuja Cements Ltd also faced an 11.98% decline to Rs 483.75, with LIC holding a 5.07% interest.
Adani Enterprises Ltd saw its shares fall by 22.61% to Rs 2,182.55; LIC's stake in this flagship company was 4.07%. Additionally, Adani Green Energy Ltd and Adani Ports experienced drops of 18.80% and 13.53%, respectively. LIC owned 7.86% of Adani Ports and 1.36% of Adani Green Energy.
These developments highlight the significant impact of legal challenges on the financial standing of the Adani group and its investors like LIC.
