Corporate Grapevine     

Published: June 15, 2023
Updated: June 15, 2023

Adani comeback is windfall for LIC

After the disastrous Hindenburg Research report, which had administered a body blow to the Ahmedabad-based Adanis, the group’s shares are seeing a spectacular comeback. And interestingly, the biggest gainers are LIC and GQG Investments of the US which bet on Adani shares at the ‘right’ price.

LIC’s holding value in Adani group stocks as on June 1 was Rs 48,481 crore, 61 per cent higher than its cost of investments of Rs 30,127 crore. At the end of March, LIC’s holding in Adani Group stocks was similar to that in Decemberend and did not see any meaningful changes. Even LIC top officials had not expected such a windfall.

The maximum exposure of LIC in Adani group stocks was in Adani Ports & SEZ and Adani Enterprises at the end of March 2023.

Recently, Jefferies came out with a detailed report on Adani group stocks and gave a strong buy on Adani Ports, shares of which have already recovered and are trading at pre-Hindenburg price levels.

Shares of Adani Enterprises have also gained sharply and are up 50 per cent from the March 31 closing price.

Despite the group’s shares losing Rs 12.5 trillion in market capitalisation, the comeback has helped LIC ward off the losses as well as public criticism.