Amid ongoing turbulence over the Hindenburg Research report, the Life Insurance Corporation (LIC) of India has clarified that the credit ratings of all of the Adani debt securities held by LIC are AA and above. In exclusive details shared with ET Now, LIC said that the corporation’s exposure in Adani Group, as on date, is 0.975 per cent of LIC’s Total AUM at book value.
Adding that LIC investments in Adani Group companies have been made over a period of years, officials said that LIC’s total holding under equity and debt is Rs 35,917.31 crore as on December 2022 end under the Adani Group of companies. Total purchase value under all Adani Group companies is Rs 30,127 crore even as the total amount invested under thhe Adani Group amounted to Rs 36,474.78 crore as on date.
Emphasizing that LIC follows strict investment framework compliant with applicable norms, officials said that the available solvency margin of LIC as of September 2022 was well above the target of 160 per cent. Reiterating LIC’s commitment to safeguarding stakeholders’ interests, officials said that LIC board and management is committed to the responsibilities towards stakeholders.
Hindenburg Research report on Adani Group companies
Last week, US-based Hindenburg Research released a report, disclosing that the company was short on Adani Group companies. In the trading sessions that followed, shares of Adani Group companies witnessed massive declines. Shares of Adani Enterprises, Adani Power, Adani Ports, Adani Transmission and other Adani Group companies traded in red on Wednesday, Friday and continued their downfall on Monday.
Adani Group hit out at Hindenburg Research and said that the report was driven by ‘an ulterior motive’ to ‘create a false market’. Hindenburg Research, in turn, said that the Adani Group should file a lawsuit in the matter in the US courts if the company was ‘serious’.
