LIC’s Adani Group Investments Increase 59% in FY24; See Details

Investments made by the Life Insurance Corporation of India (LIC) in seven Adani Group firms have increased by an astounding 70%. As of March 31, 2023, LIC’s investments in Adani firms had increased to Rs 61,657 crore from Rs 36,089 crore.

Adani Green and Adani Ports, two of LIC’s holdings in the company, have grown in value the most during the fiscal year 2023–2024. Adani Green had a 114% increase, while LIC’s investments increased from Rs 1,892 crore at the end of FY23 to Rs 4,045 crore at now.

Similarly, LIC’s investments in Adani Ports increased by 113%, from Rs 10,727 crore at the end of FY23 to Rs 22,819 crore now, demonstrating a significant appreciation.

According to the statistics, the value of LIC’s stake in Adani Enterprise Ltd. increased dramatically, rising from Rs 8,495.31 crore on March 31, 2023, to Rs 14,305.53 crore a year later.

The largest increase was seen in LIC’s investment in Adani Green Energy Ltd., which more than doubled in value to Rs 3,937.62 crore in only a single year. Additionally, the value of the insurer’s stakes in ACC, Ambuja Cements, and Adani Total Gas Ltd. increased.

The insurance behemoth was the focus of intense political criticism last year for its investment in the Adani company, which was made possible by accusations of stock manipulation stoked by the Hindenburg report. The Adani group disclaimed any misconduct.

The equities of the Adani Group, which suffered a $150 billion loss at its lowest point, have made an amazing recovery thanks to strong earnings growth across a variety of its varied companies. In response to political pressure, LIC intentionally decreased its exposure to Adani Ports & SEZ and Adani Enterprises, two of the group’s flagship firms. However, as a result, the companies’ shares saw significant increases of 83% and 68.4%, respectively.

According to stock market statistics, LIC investments showed a 59% increase in value in FY24 despite the company reducing its shareholding. Foreign investors pounced on the pressure on domestic investors, with major players like the Qatar Investment Authority, US-based GQG Investment, Abu Dhabi-based IHC, and French behemoth TotalEnergies investing almost Rs 45,000 crore in Adani equities.

Adani has solidified its position as India’s top infrastructure company in the year following the release of the Hindenburg report. The company is fiercely focused on driving the country’s green energy transition and has a strong presence in vital industries like ports, airports, data centers, and roadways.