MUMBAI: The rising trend in the shares of Adani Group companies has helped
public sector behemoth Life Insurance Corporation of India (LIC) lap up tremendous returns on its investments in just 8 trading days. Most of the Adani Group companies have rallied upto 20 per cent in intraday trade since last week while the stock of Adani Total Gas has almost doubled investors' money in a week. Five of Adani stocks have turned multibaggers from its 52 week lows.
LIC holds stakes in seven group companies of Adani, including 9.07 per cent in Adani Ports and Special Economic Zone Ltd and 4.23 per cent in Adani Enterprises Ltd.
According to BQ Prime, the combined value of the insurer's holdings in Adani stocks stood at Rs 56,629 crore as of December 5, recovering by Rs 30,300 crore from the lowest they fell to after the short-seller's allegations.
In the past four months, the insurer’s investments in these companies have all seen tremendous returns. Its investments in Adani Total delivered 59 per cent returns, similarly 45 per cent returns in Adani Energy Solutions, 44 per cent in Adani Green Energy and 16 per cent in Adani Enterprises.
LIC touched a 52 week high of Rs 799.90 on BSE and Rs 800 on NSE on
Thursday. It finally closed with a gain of 5.34 per cent at Rs 785.50 on BSE. The total volume traded stood at 161.61 lakh.
In January this year, the US based short seller Hindenberg Research had accused the Gautam Adani-helmed Group of stock manipulation and other financial misdeeds that had led to a stock rout with the cash market counter hitting lower circuits for a month.
According to a statement issued by LIC on January 30, 2023, the total purchase value of equity over the last many years under all Adani Group companies was Rs 30127 crore and the market value for the same as at the close of market hours on January 27, 2023 was Rs 56142 crore.
Several factors worked in favour of Adani Group shares rally, first was ruling Bhartiya Janata Party (BJP) winning in three states, secondly the US government comments that the Hindenburg Research accusations against the Gautam Adani-led group were not relevant and unsubstantiated.
