LIC stays positive on Adani exposure despite group stocks cracking
Siddhartha Mohanty’s, MD at LIC India, comments indicate that LIC is confident in its investments in Adani and that the company's investments are made with a focus on ensuring the safety and security of its client's funds.
All Adani group stocks were trading in the red on Wednesday, extending losses from previous sessions. The group's flagship company Adani Enterprises opened higher but slipped later in the trade. At the last count, the shares hit the lower circuit of 15 percent. Adani Ports too opened higher before slipping into the red.
Speaking to CNBC-TV18, Siddhartha Mohanty, the CEO of LIC, said that the life insurance behemoth is positive on the Adani stocks.
"All investments are made in accordance with the company's standard operating procedures (SOPs)," he said adding that the investments are within LIC's prudent norms.
| LIC's loss in Adani Group stocks | ||
| ADANI COS | SHAREHOLDING | LOST |
| Adani Enterprises | 4.23% | Rs 6,294.74 crore |
| Adani Ports | 9.14% | Rs 5,255.18 crore |
| Adani Total | 5.96% | Rs 13,080 crore |
| Adani Transmission | 3.65% | Rs 4,224 crore |
| Adani Green | 1.28% | Rs 1,546 crore |
| ACC | 6.41% | Rs 588.73 crore |
| Ambuja Cement | 6.32% | Rs 2,070.34 crore |
| Total: Rs 33,060 crore | ||
“All our investments are as per SOPs. We are a large player and I don’t think this will affect anything for LIC’s total investments. We are hopeful and positive on all our investments not just on one stock,” he said.
Also Read | Adani group companies continue to be under pressure, most stocks locked in lower circuit
Shares of Adani Wilmar and Adani Power have been in the lower circuit for the fifth straight session. The shares have fallen in nine out of the last ten sessions.
Mohanty also noted that LIC regularly communicates with the companies it invests in, as a routine. He pointed out that earlier policies where the sum assured was more than 10 times the premium have been done away with.
When asked about the impact of the budget provisions on LIC and its investors, Mohanty stated that it will not have much impact. He also shared his sense that the proposed increase in the coverage of the insurance policy from Rs. 10 lakh to Rs. 5 lakh will apply in aggregate for policies across all issuers.
On Tuesday, the Adani Enterprises Rs 20,000 crore FPO was fully subscribed on the final day.
First Published: Feb 1, 2023 3:55 PM IST
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