LIC has invested in five Adani Group companies. It has a share of 1 to 9 percent. LIC has been shocked by the fall in the shares of Adani Group.
New Delhi : India’s largest life insurance company LIC (LIC) is facing crisis for the second time in a week. Four days ago, a Hindenburg report on Gautam Adani’s companies shook LIC. LIC has invested in five Adani Group companies. It has a share of 1 to 9 percent. LIC has been shocked by the fall in the shares of Adani Group. Now after the provision made by the Finance Minister, LIC shares declined on Wednesday.
Finance Minister Nirmala Sitharaman has made several announcements in the Union Budget to promote the new tax regime. It does not allow the benefit of deduction. Now the benefit of deduction will not be available on large sum insured. As soon as this exemption from income tax will be closed, it will affect the shares of all insurance companies including LIC.
Why did it fall?
There is a huge fall in the shares of LIC. LIC’s stock fell 8.30 per cent to Rs 601. In the afternoon, shares of SBI Life Insurance fell 10 per cent to Rs 1,097.95, ICICI Prudential Life fell 9.88 per cent to Rs 407.50 and HDFC Life Insurance fell 11 per cent to Rs 515.
business impact
The government’s decision to promote the new tax regime will have an impact on the business of insurance companies. Many taxpayers buy insurance policies only to avail deduction under section 80C.
Hindenburg effect
The American company Hindenburg released a report. In that report, Adani Group had claimed to have exaggerated its wealth by manipulating the stock market. After the arrival of this report, the shares of many companies of Adani declined. The Adani Group has claimed that all these allegations are false and that the Hindenburg report is based on partial and misinformation. But LIC’s shares also declined due to LIC’s investment in Adani Group.
LIC claim
It has been claimed that LIC alone has suffered a loss of about Rs 16,000 crore after the fall in Adani’s shares. Giving clarification, LIC has said that LIC has invested a total of Rs 30 thousand 127 crore in Adani’s companies. If the share price of Adani is sold today, then the amount will be Rs 56 thousand 142 crore. Means the profit of 26 thousand 16 crores will be more than the amount invested by LIC. LIC has said this.
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