GUWAHATI: The Life Insurance Corporation of India (LIC) took a huge hit on Thursday, November 21 when its holdings in Adani stocks dropped by nearly ₹12,000 crore in a single trading session, following a sharp decline in the group’s shares.
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The LIC has investments in seven companies of the Adani Group, according to reports.
The development follows the US Department of Justice and the US Securities and Exchange Commission making bribery allegations against directors of the Adani Green-Gautam Adani and his nephew Sagar Adani- after which arrest warrants have been issued against the duo in the U.S. The Adani group refuted all the allegations, terming it as ‘baseless’ and said in a statement that all legal recourse will be taken.
According to the reports, LIC invested in Adani Enterprises, Adani Ports, Adani Green Energy, Adani Energy Solutions, Adani Total Gas, ACC and Ambuja Cements. Due to sharp decline in Adani’s stock, LIC has lost Rs 11, 728 crore in its shareholding.
The stocks of Adani Ports have caused a massive loss to LIC. Following the plummet in Adani Ports’ stock, LIC has lost Rs 5,009.88 crore. Additionally, the state-run insurance company incurred a loss of Rs 3,012.91 crore due to the decline in Adani Enterprises’ stocks. The shares of Ambuja Cement also resulted in a loss of Rs 1,207.83 crore for LIC.
The insurance company lost Rs 807 crore in Adani Total, Rs 716.45 crore in Adani Energy Solutions, Rs 592.05 crore in Adani Green Energy, and Rs 381.66 crore in ACC.
According to the U.S. Attorney’s Office, Eastern District of New York, “A five-count criminal indictment was unsealed in federal court charging Gautam Adani, Sagar R. Adani, and Vneet S. Jaain, with conspiracies to commit securities and wire fraud and substantive securities fraud for their roles in a multi-billion-dollar scheme to obtain funds from U.S. investors and global financial institutions on the basis of false and misleading statements.”
