Market value of LIC investment in Adani stocks Skyrockets to Rs 45,000 Crore in less than 2 Months

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Mumbai - After staring at potential losses on its investment in Adani Group stocks in February, Life Insurance Corporation of India (LIC) will now be on cloud nine, as the market value of its holding has seen significant appreciation in less than 2 months. Thanks to the remarkable surge in Adani Group stocks, the Life Insurance Corporation of India (LIC), the country's largest insurer and a prominent institutional investor, has witnessed a significant rise in the market value of its holdings. Since April, LIC's holdings have experienced a remarkable increase of over Rs 6,200 crore, reaching a total of Rs 45,481 crore. The market value was calculated based on the holding as of March end and Tuesday’s close price of stocks. Market value of LIC investments in Adani stocks Company Mar 31 market value (Rs Cr) May 23 market value (Rs Cr) Ambuja Cements 4,564 5,337 Adani Ports and SEZ 12,448 14,463 Adani Green Energy 1,893 2,123 Adani Enterprises 8,493 12,782 ACC 2,006 2,189 The Adani stocks experienced an intense drop in value after Hindenburg Research accused the Adani group of dubious corporate practices, stock price fraud and manipulation. This resulted in a loss of over $100 billion in the market capitalization within a single month. This had an impact on LIC’s investment in the stocks to the extent that investors feared the insurer booking losses. Despite the rout in Adani stocks triggered by the explosive report of Hindenburg, the life insurer had increased its stake in four companies – Adani Enterprises, Adani Green Energy, Adani Transmission, and Adani Total Gas, during the March quarter. Shares of Adani Enterprises have made a huge jump since its 52-week low after the Hindenburg report. They increased by an impressive 159% over the last year, with 37% of that gain taking place in May alone. Adani Ports and SEZ was also able to recover back to levels it was at before the Hindenburg report. In the last three trading sessions, a substantial portion of the gains in Adani stocks has been observed. This surge has brought a sense of relief to investors on Dalal Street following the statement by the Supreme Court-appointed panel. The panel concluded that there were no regulatory lapses pertaining to price manipulations in Adani stocks, as alleged by Hindenburg Research. Adani stocks received an additional boost from their recent investor, GQG Partners. The investment firm, owned by NRI investor Rajiv Jain, has increased its stake in Adani Group by approximately 10%. This development comes around one month after the firm made a bold move by investing over Rs 15,000 crore in Adani stocks during the peak of the Hindenburg-led downturn. "Within five years, we'd like to be one of the largest investors in Adani Group depending on the valuation, after the family," Jain told Bloomberg in an interview. Against the backdrop of these recent news developments, it appears that the Hindenburg effect is gradually diminishing, and the Adani bulls are regaining their momentum.

 

Mumbai - After staring at potential losses on its investment in Adani Group stocks in February, Life Insurance Corporation of India (LIC) will now be on cloud nine, as the market value of its holding has seen significant appreciation in less than 2 months.

Thanks to the remarkable surge in Adani Group stocks, the Life Insurance Corporation of India (LIC), the country's largest insurer and a prominent institutional investor, has witnessed a significant rise in the market value of its holdings. Since April, LIC's holdings have experienced a remarkable increase of over Rs 6,200 crore, reaching a total of Rs 45,481 crore.

The market value was calculated based on the holding as of March end and Tuesday’s close price of stocks.

Market value of LIC investments in Adani stocks

Company 

Mar 31 market value (Rs Cr)

May 23 market value (Rs Cr)

Ambuja Cements

4,564

5,337

Adani Ports and SEZ

12,448

14,463

Adani Green Energy

1,893

2,123

Adani Enterprises

8,493

12,782

ACC

2,006

2,189

 

The Adani stocks experienced an intense drop in value after Hindenburg Research accused the Adani group of dubious corporate practices, stock price fraud and manipulation. This resulted in a loss of over $100 billion in the market capitalization within a single month. This had an impact on LIC’s investment in the stocks to the extent that investors feared the insurer booking losses. Despite the rout in Adani stocks triggered by the explosive report of Hindenburg, the life insurer had increased its stake in four companies – Adani Enterprises, Adani Green Energy, Adani Transmission, and Adani Total Gas, during the March quarter.

 

Shares of Adani Enterprises have made a huge jump since its 52-week low after the Hindenburg report. They increased by an impressive 159% over the last year, with 37% of that gain taking place in May alone. Adani Ports and SEZ was also able to recover back to levels it was at before the Hindenburg report.

In the last three trading sessions, a substantial portion of the gains in Adani stocks has been observed. This surge has brought a sense of relief to investors on Dalal Street following the statement by the Supreme Court-appointed panel. The panel concluded that there were no regulatory lapses pertaining to price manipulations in Adani stocks, as alleged by Hindenburg Research.

Adani stocks received an additional boost from their recent investor, GQG Partners. The investment firm, owned by NRI investor Rajiv Jain, has increased its stake in Adani Group by approximately 10%. This development comes around one month after the firm made a bold move by investing over Rs 15,000 crore in Adani stocks during the peak of the Hindenburg-led downturn.

"Within five years, we'd like to be one of the largest investors in Adani Group depending on the valuation, after the family," Jain told Bloomberg in an interview.

Against the backdrop of these recent news developments, it appears that the Hindenburg effect is gradually diminishing, and the Adani bulls are regaining their momentum.

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