The shares of the Adani Group are regaining before lost price levels. It has resulted in a considerable recovery of investments for the government insurer Life Insurance Corporation of India.
LIC has a significant stake in all Adani Group listed entities as it owns over 9% of Adani Ports alone! It holds over 4% of Adani Enterprises, over 5% of Adani Total Gas, and 1% of all other listed Adani entities.
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Adani Group's stock fell along with the value of LIC's interests in the business. It happened after Hindenburg's damning report accused Adani of many crimes.
Yet, due to improving sentiment in the Adani Group, the company's stock has seen a robust recovery recently as LIC's stake. Further, it was built at a cost of over Rs 30,000 crores, and has surged back to over Rs 40,000.
Yet, it is still lower than Rs 81,268 crores, the value of LIC's entire stake in the Adani Group, before Hindenburg's report was published.
Even though the company's investment is on a path to recovery, it was an eye-opener for the company and all its stakeholders. As such, LIC is planning to limit its exposure to companies, entities, and groups with common promoters.
Although the news is unverified, a step like this will allow LIC to safeguard itself and its investments from another similar decline.
Shares of the Adani Group have seen a significant recovery in the last few sessions as the stock of Adani Enterprises. The flagship company of the Adani Group was trading at around Rs 1,674.80 per share at reporting time, up around 65% from its lowest level of Rs 1,017.45.
- Aman Agarwal
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