Life Insurance Company of India (LIC) has denied reports that it has suffered huge losses by investing heavily in the Adani Group, which has been accused by US-based Hindenburg Research of being involved in stock market fraud.
In this regard, the explanatory statement issued by the company states: In normal business days, LIC does not share information about its business investments in the public space.
However, as some information is being shared about our investments in the Adani Group, we are providing this information to reveal the factual situation in this regard.
LIC’s investment by buying shares and debentures in Adani group companies is Rs 35,917.31 crore.
The purchase value of all the company shares of the Adani Group which LIC has acquired over the years is Rs 30,127 crore. Their market capitalization was Rs 56,142 crore at the close of trading hours on 27th.
The total amount invested in Adani Group is Rs.36,474.78 crore. These investments were made over different periods.
All the bonds purchased by LIC from Adani Group are ‘AA’ rated. Apart from that, the bonds were bought following the norms of investment regulatory body ‘ITAI’.
As on September 30 last year, the total value of assets under LIC management was Rs 41.66 lakh crore. As such, only 0.0975 percent of LIC’s asset value is invested in Adani Group.
LIC is a reputed and stable company with a history of 66 years. Its management is carrying out its investments within the appropriate norms and laws. The market value of investments can change anytime and in any direction. Hence, the company is investing carefully with a long-term view in mind.
In order to maintain its financial stability, LIC has a robust process of evaluating corporate liabilities and determining the credit limit.
LIC management has been acting with utmost responsibility and security keeping in mind the interests of its shareholders.
It is stated in the explanatory statement that the company will follow the correct policies and regulations and protect the interests of the shareholders in the future.