Finance Minister Nirmala Sitharaman shared an update about Life Insurance Corporation of India’s (LIC) debt exposure to billionaire Gautam Adani-led conglomerate and Adani Ports & SEZ. As of March 5, the insurer’s debt exposure to the Adani Group is Rs 6,183 crore.
Of the total Rs 6,183 crore, LIC has an exposure of Rs 5,390 crore to APSEZ.
Last months, the finance minister had said that the regulators will do their jobs. They are independent of the government. “They are regulators and they are independent, and they are left to themselves to do what is appropriate….for keeping the markets regulated in prime condition, the Sebi is the authority. And it has the wherewithal to keep that (in) prime condition,” Sitharaman had stated.
Allaying the fears of policyholder, LIC Chairman in February shared that the investment losses in Adani Group companies following a stock rout will not have any impact on policyholders and shareholders. He shared that the insurer’s total exposure to Adani Group is less than 1 per cent of its total assets under management (AUM) at book value.
LIC had clarified that the company’s total holding in equity and debt under Adani Group companies was Rs 35,917.31 crore as on December 12, 2022. The total purchase value of many years in Adani Group companies was Rs 30,127 crore.
Meanwhile, The Adani Group on Sunday informed that the promoters have completed full prepayment of margin-linked share backed financing worth $2.15 billion before the committed deadline of March 31. The promoters of the group have also prepaid $500 million facility taken for Ambuja acquisition financing.
In addition to this, the conglomerate has increased equity in Ambuja Financing aggregating $2.65 billion.
