Insurance giant Life Insurance Corporation on Monday said its total exposure to Adani Group is 0.975% of its total assets under management at book value. LIC’s AUM was Rs 41.66 lakh crore at the end of September last year.
LIC’s total holding in Adani Group of companies under equity and debt was Rs 35,917 crore at the end of December, the company said in a note. It said the total purchase value of equity under all Adani Group companies was Rs 30,127 crore and the market value of the same was Rs 56142 crore at the end of January 27, 2023.
LIC said these investments have been made over a period from a long-term perspective and were based on detailed due diligence. It also said the credit rating of all the Adani debt securities held by it is above AA grade and in line with insurance regulations.
The state-owned insurer released these numbers following the sharp fall in share prices of several Adani group of companies after US-based short seller Hindenburg Research raised doubts over alleged malpractices by the promoters of Adani group and warned investors of high leverage in these companies.
“LIC follows a robust procedure for valuation of its liabilities and determination of its solvency margin in order to ensure its financial soundness on a continuous basis,” the insurance company said in the note.
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