The money of crores of common people in the country is at risk. Life insurance has gone without a hitch. Without even thinking that what he has is people’s money, he is burning his hands by making investments in the public sector insurance company LIC and Adani companies.
18000 crore loss in 2 days Investments without hindsight LIC is the largest equity holder in the Adani GroupThe money of crores of common people in the country is at risk. Life insurance has gone without a hitch. Without even thinking that what he has is people’s money, he is burning his hands by making investments in the public sector insurance company LIC and Adani companies.
As if there was only one company in the country, LIC took the most money and poured it into Adani companies. Now with the Hindenburg report, the collapse of the Adani empire has come and the LIC lamp has also gone out. LIC’s wealth has been drained by more than Rs. 18 thousand crores in two days.
New Delhi, January 27: Public sector insurance giant Life Insurance Corporation (LIC) has lost a huge amount of money collected as premium from its policyholders in Adani shares. LIC’s investments in Adani companies were reduced by more than Rs.18,000 crores within two days.
While the value of LIC’s investments in Adani group companies was Rs.81,268 crore as of 24th of this month, it fell to Rs.61,621 crore as of Friday. Shares of Adani Group fell for the second trading day in a row on Friday due to the harsh accusations made by American hedge fund Hindenburg against the Gautam Adani trading group, which is known as a close friend of Prime Minister Narendra Modi.
This blow fell hard on LIC. Adani has a big egg LIC has invested more heavily in Adani companies than any mutual fund in the country. In fact LIC is the biggest investor in that group of companies after promoter Gautam Adani. None of the country’s top mutual funds has more than 1 percent stake in Adani companies. But LIC has over 1 percent stake in five Adani companies.
LICA is the second largest investor after Gautam Adani in the group’s flagship company Adani Enterprises. Adani Enterprises recently issued Rs. 20,000 crore FPO size LIC has bid for five percent shares. The company has already allotted those shares to LIC.
Increase investments Rapidly Any mutual fund or insurance company while investing in a company for long term will analyze the financial sources of the company and invest gradually. A mutual fund analyst said that LIC has been increasing investments in Adani group companies with jet speed. The stake in Adani Enterprises was 1.32 per cent as on June 30, 2021 and increased to 4.02 per cent as on September 30, 2022.
Similarly, Adani increased from 2.11 percent to 5.77 percent in Totalgas and Adani Transmission from 2.42 percent to 3.46 percent within a year. Analysts are surprised by LIC’s acquisition as the prices of these shares are rising. In Adani Ports, LIC’s share has decreased from 11.9 percent to 9.8 percent.
This reduction was done for no other reason than to comply with the mutual funds’ rule of not investing more than 10 percent in any company. LIC has a 1.15 percent stake in Adani Green Energy, which is yet to begin commercial operations. 1 percent stake in Adani Power. The total value of these investments is Rs.70,000 crores.
Apart from these, LIC also has shares in Ambuja Cements and ACC, which were recently acquired by the Adani Group. The value of these is Rs. Over 10,000 crores. Not only has this total investment dropped by more than 15 percent in two days…analysts are warning that there is a possibility of a further drop in the coming days.
The reason is closeness to the Prime Minister With 25 crore policyholders across the country and assets equal to the assets under management of the entire mutual fund industry in the country, LIC is systemically the country’s most important institution, analysts say. Such a firm is questioning the investment in a trade group owned by a person close to the Prime Minister.
An article published by Bloomberg stated that although the shares of this group have been holding big rallies for two years, most of the desi mutual funds are staying away from them. Shares of Adani Enterprises have risen 1900 percent in the last five years, surpassing American businessman Elon Musk’s Tesla.
Recently, LIC has invested Rs.300 crore in Adani Enterprises FPO anchor issue at a price of Rs.3,276 this Wednesday. That share was Rs. 2,700 is available in the market. In a single trading day, LIC’s new investment cost fell to Rs 250 crore.