Lic investment in adani

Why do LIC, SBI continue to invest in Adani group, Opposition asks Noting that LIC and SBI have seen huge declines in market cap and investment value, Opposition leaders ask why public money is being wasted, and question the Central government’s silence January 28, 2023 11:06 pm | Updated January 29, 2023 04:33 pm IST - NEW DELHI Opposition leaders across party lines on Saturday raised concerns about the Life Insurance Corporation (LIC) of India and the State Bank of India’s (SBI) exposure to the Adani group, questioning the Union government’s silence on the issue. On January 25, New York-based investor research firm, Hindenburg Research, In a series of With regard to SBI, Mr. Surjewala noted that its market capitalisation had declined by a whopping ₹54,618 crore, adding that the banking sector’s loan exposure to the Adani group was ₹81,200 crore. Given this situation, he questioned why the SBI Employees Pension Fund and SBI Life were still investing ₹225 crore in the Adani Group. ‘Silence from the Centre’ The Congress leader also asked why Central agencies such as the Reserve Bank of India (RBI), the Securities Exchange Board of India (SEBI), the Enforcement Directorate, the Serious Frauds Investigation Office, and the Central Bureau of Investigation, as well as Finance Minister Nirmala Sitharaman, have all remained “mute”. Priyanka Chaturvedi, deputy leader of the Uddhav Thackeray-led Shiv Sena faction in the Rajya Sabha, echoed his concerns. ”LIC saw 22% dip in its hold...

NEW DELHI: State-owned The rout in the Adani Group shares that followed the Hindenburg report released on January 24 led to LIC's investments turning negative a week ago. Against a purchase price of Rs 30,127 crore, the value of shares LIC held in the Adani Group dropped to Rs 29,893 crore on February 24. But the rally in the Adani Group stocks after investors poured in money has reversed the situation. The value of LIC's shareholding in Adani Group stood at Rs 39,068 crore on Friday - a notional profit of nearly Rs 9,000 crore. The fall in Adani stocks had led to questions over LIC's investment decision.

Life Insurance Corporation (LIC), India's largest institutional investor, has issued a clarification on January 30, regarding its exposure to the Adani group of companies in the light of huge volatility in the share prices of the Adani group of companies. LIC has clarified that the total value of Adani group company shares it has purchased over the last many years is Rs 30,127 crore. This amounts to a market value of Rs 56,142 crore, based on the closing price on January 27. This exposure by LIC in the Adani group as on date is 0.975 percent of the total assets under management (AUM) at book value. LIC further said that the credit rating of all of Adani's debt securities are ‘AA’ and above, and hence its investments comply with IRDAI (Insurance Regulatory and Development Authority of India) guidelines. USER CONSENT We at moneycontrol use cookies and other tracking technologies to assist you with navigation and determine your location. We also capture cookies to obtain your feedback, analyse your use of our products and services and provide content from third parties. By clicking on 'I Accept', you agree to the usage of cookies and other tracking technologies. For more details you can refer to our

Hindenburg Research, an American investment research company, on Tuesday published a The allegations listed by Hindenberg led to a massive drop in the prices of Adani stocks over the next few days. This in turn has raised concerns over the high exposure of state-owned insurance company, the Life Insurance Corporation, to Adani Group companies. Over the past few years, LIC has invested significantly in the Adani group, channeling millions of rupees of middle class savings into the conglomerate. Any sharp fall in Adani stock prices will now end up affecting the returns of millions of LIC policyholders. Allegations against Adani Group Hindenburg Research, following a two-year investigation, made wide-ranging allegations of the Adani Group being involved in corporate malpractice. It alleged that members of the Adani family had cooperated in creation of offshore shell entities in tax-havens such as Mauritius and generated forged import-export documents in an apparent effort to generate fake turnover and to siphon money from the listed companies. The research firm also alleged that some shells seemingly served several purposes such as stock parking or stock manipulation and money laundering. Short sellers identify allegedly overvalued companies, borrow and sell their stocks at current market price and buy them back at a lower price in the future when the price has fallen, in order to make profit. To this end, activist short-sellers seek to expose such a company’s negative financ...

The Life Insurance Corporation (LIC) has not reduced any exposure in Adani Group but it wants the embattled conglomerate to "throw some light on what is happening in the market", the state-owned insurer's chairman said on Thursday. LIC was recently under fire for investing in Adani Group companies, whose shares have seen massive erosion in market cap following a spate of allegations made in a report by US-based short seller Hindenburg Research. LIC has invested over Rs 36,000 crore in Adani Group companies. A week after the Hindenburg report and subsequent market rout, LIC in a statement said the total purchase value of equity, purchased over the last many years, under all the Adani Group companies was over Rs 36,000 crore and the market value as on January 27 was Rs 56,142 crore. Â On Thursday, LIC chairman M R Kumar said that he will take a view on the company's investment in Adani Group two to three years from now. He also said that the state-run insurer would be calling the management of Adani Group to understand what was happening in the market, "if they (Adani) can throw some light on it". "We will be calling them sometime just to know the business profile and what they are planning to do and how are they planning to manage the whole thing," the LIC chairperson said. Â Â Following the report by Hindenburg, the shares of Adani firms came under heavy selling pressure, wiping off thousands of crore in a matter of few days. Speaking on the selling of Adani shares by fore...

"But by itself, it is India's biggest institutional investor and the Adani group was one of the largest in terms of market capitalisation," he said.    Infrastructure companies borrow a lot and are always at the mercy of regulators because they often run quasi utilities, Damodaran said. Damodaran was quick to give example of an airline. He said a private airline is never given the complete power to raise prices, as if they were given the same, the operator would surely hike airfares by three times. He said the businesses that the Adani group are low margin businesses even in their best days, but are quite capital-intensive. Infra companies, he said, believe that once they build the business, they would find a way to pay interest. "One just can't blame Adanis for that. Banks lend not based on earnings power or cash flows, they like to lend on big physical assets," he said. Damodaran gave an example of real estate and said if the cash flow was so important, nobody should be a lender in Mumbai real estate market, as there is not enough rental income in Mumbai in an expensive piece of property. But bankers do love to lend on big physical assets, he said. "Infrastructure businesses feed on that. I don't think you can make that a crime. You can argue that this is a bad risk. You should not be borrowing so much money when your operating income is just 1.4 times your interest expenses. There is not much buffer," he said. Damodaran said everything that Hindenburg Research said ...

The Life Insurance Corporation (LIC) has not reduced any exposure in Adani Group but it wants the embattled conglomerate to "throw some light on what is happening in the market", the state-owned insurer's chairman said on Thursday. LIC was recently under fire for investing in Adani Group companies, whose shares have seen massive erosion in market cap following a spate of allegations made in a report by US-based short seller Hindenburg Research. LIC has invested over Rs 36,000 crore in Adani Group companies. A week after the Hindenburg report and subsequent market rout, LIC in a statement said the total purchase value of equity, purchased over the last many years, under all the Adani Group companies was over Rs 36,000 crore and the market value as on January 27 was Rs 56,142 crore. On Thursday, LIC chairman M R Kumar said that he will take a view on the company's investment in Adani Group two to three years from now. He also said that the state-run insurer would be calling the management of Adani Group to understand what was happening in the market, "if they (Adani) can throw some light on it". "We will be calling them sometime just to know the business profile and what they are planning to do and how are they planning to manage the whole thing," the LIC chairperson said. Following the report by Hindenburg, the shares of Adani firms came under heavy selling pressure, wiping off thousands of crore in a matter of few days. Speaking on the selling of Adani shares by foreign fu...

• Adani Enterp. 2475.60 ↓ -158.10 (-6.00%) • Adani Ports 718.25 ↓ -15.80 (-2.15%) • Apollo Hospitals 4536.45 ↓ -13.95 (-0.31%) • Asian Paints 3101.50 ↓ -19.10 (-0.61%) • Axis Bank 917.70 ↑ 1.55 (0.17%) • B P C L 363.30 ↓ -3.30 (-0.90%) • Bajaj Auto 4517.60 ↑ 19.50 (0.43%) • Bajaj Finance 6785.95 ↑ 5.40 (0.08%) • Bajaj Finserv 1426.45 ↓ -10.80 (-0.75%) • Bharti Airtel 801.40 ↑ 1.45 (0.18%) • Britannia Inds. 4519.80 ↓ -1.85 (-0.04%) • Cipla 938.00 ↑ 7.60 (0.82%) • Coal India 241.00 ↑ 1.70 (0.71%) • Divi's Lab. 3383.15 ↓ -2.65 (-0.08%) • Dr Reddy's Labs 4519.25 ↑ 58.70 (1.32%) • Eicher Motors 3610.90 ↑ 9.30 (0.26%) • Grasim Inds 1700.35 ↑ 2.40 (0.14%) • H D F C 2671.75 ↓ -34.10 (-1.26%) • HCL Technologies 1111.95 ↑ 4.60 (0.42%) • HDFC Bank 1615.80 ↓ -21.40 (-1.31%) • HDFC Life Insur. 566.00 ↑ 3.30 (0.59%) • Hero Motocorp 2738.70 ↑ 28.25 (1.04%) • Hind. Unilever 2614.95 ↓ -13.35 (-0.51%) • Hindalco Inds. 406.90 ↓ -3.40 (-0.83%) • ICICI Bank 940.65 ↓ -12.75 (-1.34%) • IndusInd Bank 1271.75 ↑ 11.55 (0.92%) • Infosys 1298.65 ↓ -1.40 (-0.11%) • ITC 433.50 ↑ 4.35 (1.01%) • JSW Steel 696.00 ↓ -8.10 (-1.15%) • Kotak Mah. Bank 1910.35 ↓ -11.15 (-0.58%) • Larsen & Toubro 2185.15 ↓ -12.50 (-0.57%) • M & M 1275.70 ↑ 7.15 (0.56%) • Maruti Suzuki 9270.75 ↑ 70.05 (0.76%) • Nestle India 21380.60 ↓ -23.10 (-0.11%) • NTPC 174.95 ↑ 0.80 (0.46%) • O N G C 166.25 ↑ 1.25 (0.76%) • Power Grid Corpn 235.80 ↑ 1.70 (0.73%) • Reliance Industr 2440.25 ↓ -14.30 (-0.58%) • SBI Life Insuran 1175.35 ↑ 9.75 ...

Why do LIC, SBI continue to invest in Adani group, Opposition asks Noting that LIC and SBI have seen huge declines in market cap and investment value, Opposition leaders ask why public money is being wasted, and question the Central government’s silence January 28, 2023 11:06 pm | Updated January 29, 2023 04:33 pm IST - NEW DELHI Opposition leaders across party lines on Saturday raised concerns about the Life Insurance Corporation (LIC) of India and the State Bank of India’s (SBI) exposure to the Adani group, questioning the Union government’s silence on the issue. On January 25, New York-based investor research firm, Hindenburg Research, In a series of With regard to SBI, Mr. Surjewala noted that its market capitalisation had declined by a whopping ₹54,618 crore, adding that the banking sector’s loan exposure to the Adani group was ₹81,200 crore. Given this situation, he questioned why the SBI Employees Pension Fund and SBI Life were still investing ₹225 crore in the Adani Group. ‘Silence from the Centre’ The Congress leader also asked why Central agencies such as the Reserve Bank of India (RBI), the Securities Exchange Board of India (SEBI), the Enforcement Directorate, the Serious Frauds Investigation Office, and the Central Bureau of Investigation, as well as Finance Minister Nirmala Sitharaman, have all remained “mute”. Priyanka Chaturvedi, deputy leader of the Uddhav Thackeray-led Shiv Sena faction in the Rajya Sabha, echoed his concerns. ”LIC saw 22% dip in its hold...

"But by itself, it is India's biggest institutional investor and the Adani group was one of the largest in terms of market capitalisation," he said.    Infrastructure companies borrow a lot and are always at the mercy of regulators because they often run quasi utilities, Damodaran said. Damodaran was quick to give example of an airline. He said a private airline is never given the complete power to raise prices, as if they were given the same, the operator would surely hike airfares by three times. He said the businesses that the Adani group are low margin businesses even in their best days, but are quite capital-intensive. Infra companies, he said, believe that once they build the business, they would find a way to pay interest. "One just can't blame Adanis for that. Banks lend not based on earnings power or cash flows, they like to lend on big physical assets," he said. Damodaran gave an example of real estate and said if the cash flow was so important, nobody should be a lender in Mumbai real estate market, as there is not enough rental income in Mumbai in an expensive piece of property. But bankers do love to lend on big physical assets, he said. "Infrastructure businesses feed on that. I don't think you can make that a crime. You can argue that this is a bad risk. You should not be borrowing so much money when your operating income is just 1.4 times your interest expenses. There is not much buffer," he said. Damodaran said everything that Hindenburg Research said ...