Mutual funds have mostly trimmed their stakes in Adani Group companies after the Hindenburg Report, however, the Life Insurance Corporation of India (LIC) has upped its stake in four companies of the group in the January to March quarter of 2023 (Q4FY23), amid the massive sell-off.
LIC has increased its stake in Adani Green Energy, Adani Total Gas, Adani Enterprises and Adani Transmission, but it pared a stake in Ambuja Cements and Adani Ports & Special Economic Zone, according to data available on the exchanges.
The insurance leviathan’s stake in Adani Enterprises has increased from 4.23% in the December quarter (Q3FY23) to 4.26% in the March quarter (Q4FY23).
LIC upped its stake in Adani Green Energy from 1.28% in the December quarter to 1.36% in the March quarter, in Adani Transmission from 3.65% to 3.68% and in Adani Total Gas from 5.96% to 6.02%.
Meanwhile, it decreased its stake in Ambuja Cements from 6.33 percent in the December quarter of 2022 to 6.3% in the March quarter of 2023. Similarly, it decreased its stake in Adani Ports and Special Economic Zone from 9.14 percent to 9.12 percent.
In January this year, Hindenburg Research ignited a firestorm by releasing a report that accused the Adani Group of a brazen stock manipulation and accounting fraud scheme over the course of decades, sparking a massive sell-off in the group’s shares and pushing business tycoon Gautam Adani lower on the World Billionaire Index.
However, reports suggested that it was not known whether LIC increased its stake in Adani Group companies before the report or after. In fact, the insurance major’s investments in the beleaguered group caused a political uproar as it is public money. Later, LIC issued a statement assuring the investors that their money is safe.
Written by Simran Bafna
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