India's largest insurance company - Life Insurance Corporation of India has not sold any shares of the Adani Group in the current share price rout, sources privy to the subject told CNBC-TV18.
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The market capitalisation of the Adani Group has halved from January 24, falling below the Rs 10 lakh crore mark in today's trading session. Shares of Adani Enterprises were down 35 percent, marking their biggest intraday fall in history before a slight recovery from the lows. Other group companies barring Adani Ports are trading at their lower circuit limit of 10 percent and five percent respectively.
Sources also told CNBC-TV18 that LIC will schedule a call next week with the top management of the Adani Group to understand their strategy, further adding that LIC is a long-term investor and continues to follow its investment strategy.
As of September 30, 2022, LIC's investment in Adani Group companies was 8 percent of its equity Assets Under Management.
Within the Adani Group Companies, LIC's largest holding lies in Adani Ports at close to 10 percent. Other holdings also range from low to high single-digits.
Adani Group companies are experiencing extreme volatility after the NSE put Adani Enterprises, Adani Ports and Ambuja Cement under the Additional Surveillance Measures (ASM) framework. As a result, these stocks will be subject to more stringent rules.
In an interaction with CNBC-TV18 on the Union Budget day of February 1, LIC CEO Siddhartha Mohanty said that the life insurance behemoth is positive on the Adani stocks and all investments are made in accordance with the company's standard operating procedures
Mohanty had also noted that LIC regularly communicates with the companies it invests in, as a routine. He pointed out that earlier policies where the sum assured was more than 10 times the premium have been done away with.
Shares of LIC are trading 1 percent lower at Rs 593.65. Shares of the Adani Group companies continue to experience volatile moves.
Also Read: Timeline: A look at the turn of events at Adani Enterprises
