LIC's stake in Adani Group companies has improved as the company's shares recover, despite controversy and opposition accusations.

PSU insurer LIC had earlier increased its stake in the companies of the Adani Group. The opposition is now questioning them for this step.

When the Hindenburg report wreaked havoc on the stocks of the Adani Group companies, the Life Insurance Corporation of India's (LIC) stake in all companies had lost a significant amount of its value. As the insurer held over 1% stake in all companies, the extent of the loss was thousands of crores. 

However, the stocks of the Adani group have seen a recovery as LIC has seen a substantial recovery in the value of its stakes. However, even when the value of the shares was declining, LIC had been reportedly improving its stake instead of reducing it. 

Fresh reports have suggested that India's largest insurer has been building its stake in the Group's companies throughout the fourth quarter. Moreover, the insurer had been buying shares of Adani Enterprises for 7 consecutive quarters! 

The company's stake in Adani Enterprises improved by 3 bps, in Adani Green Energy by 8 bps, Adani Total Gas by 6 bps and Adani Transmission by 3 bps. 

However, the insurer's stake in Ambuja and ACC saw a marginal decline while its debt exposure to the Adani Group fell by Rs 164 crores. 

The Congress has raised questions about the decision as the party is accusing the PM of misusing the funds of hardworking Indian citizens to bail out what they have termed as the 'PM's favourite business group. 

Investors in the Adani group reacted positively to the news as Adani stocks have seen some bullish movement. 

At the time of reporting, Adani Enterprises was trading around Rs 1,839.50 per share, up 2%; Adani Green Energy around Rs 983.95, up 4.22%; Adani Transmission around Rs 1,071.50, up 1.7% & Adani Total Gas around Rs 965.10 per share, up 1.4%.

- Aman Agarwal. 


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