LIC got a big blow from Adani Group, crores of rupees sunk in two days

News Desk: India’s largest insurance company (LIC) has invested a lot of money in Gautam Adani’s companies. LIC holds up to nine per cent stake in five LIC companies. The special thing is that after the allegations of fraud on Adani Group, the market value of the companies has decreased by 4,08,122 i.e. more than $ 50 billion in two days.

According to a filing, LIC is investing around Rs 302 crore ($37 million) as an anchor investor in the new FPO by Adani Enterprises Ltd for Rs 20,406 crore ($2.5 billion). After this investment, LIC’s stake in the company will increase to 4.23 per cent. In such a situation, the fear is that if the Adani Group sinks, what will happen to LIC? LIC will not be harmed?

Significantly, LIC has invested in five Adani Group companies. The total was Rs 77,268 crore, with a share ranging from 1 per cent to 9 per cent just before the publication of the Hindenburg Report on 24 January. As of December 2022, as per the data filed with the stock exchanges, no other Indian insurance company has any significant holding. Most mutual funds stayed away from this group despite big rally in some stocks.

Disclaimer: This article is provided for informational purposes only. The information should not be taken to represent the views, policies or opinions of, nor any of its employees, employees or affiliates.

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