Even if the equities are currently available at relatively much lower prices, the Life Insurance Corporation (LIC) of India does not currently have any imminent plans to increase its investment in Adani Group firms.
The Adani Enterprises follow-on public offer (FPO) had received a subscription from the largest domestic institutional investor in India at the higher price band. The stock is currently 40 percent less expensive.
“We are not thinking of doing anything,”speaking to CNBC-TV18, LIC Chairman M. R. Kumar remarked.
The giant insurance company added that it was inappropriate to make a judgement on whether it was necessary to sell its investment in Adani Group equities or take any other action because the stock price had fallen sharply in a short period of time.
“This is too short a period to take a call on whether I have to take a call,”added Kumar.
According to information provided by the government in parliament, LIC has invested a total of Rs 30,127 crore in Adani Group enterprises over the past few years. For the time being, its investments are paying off.
Following the harsh assessment by a short seller located in the US, Adani Group stocks have fallen over the past three weeks. This resulted in a string of accusations and denials between the short seller and Adani Group. Additionally, despite the FPO being fully subscribed, the latter had to cancel it due to significant price volatility.
Kumar gave us the reassurance that the downturn in Adani stock prices and the weak market will not have a detrimental impact on the embedded value of LIC.