As Adani Group stocks continue to record a steep decline since a week, TMC MP Mahua Moitra on Thursday urged the insurance regulator IRDAI to keep a watch on the state-run Life Insurance Corporation (LIC), which has invested over Rs 30,000 crore in ports-to-power conglomerate.
Gautam Adani-led Adani Group has been stung by a scathing report by US-based short-seller Hindenburg Research. Soon after the report came, Adani stocks started falling. However, the fall deepened on February 1 soon after Credit Suisse, an investment banking company, said it won’t accept Adani bonds as collateral.
In the last two days, the shares of several Adani group companies have recorded a drastic fall. Referring to a recent slide in Adani shares, Moitra said LIC’s investment value in the embattled group was 86 per cent higher as of January 27 as per the insurer’s statement. However, she said, in the last few days, the Adani stocks have fallen further over 50 per cent.
On Jan 30 @LICIndiaForever said market value of their Adani holding as of Jan 27 vs entry price was +86%. Since then Adani stocks have lost >50%. Watch out #IRDA – depositor money at stake here! pic.twitter.com/jFXTk16q9x
— Mahua Moitra (@MahuaMoitra) February 2, 2023
“On Jan 30 @LzCIndiaForever said market value of their Adani holding as of Jan 27  vs entry price was +86%. Since then Adani stocks have lost >50%. Watch out #IRDA – depositor money at stake here!” she said in a  tweet.
The LIC in a statement on January 30 said its total holding under equity and debt was Rs 35,917.31 crore as on 31 December 2022 in the Adani group companies. As per the statement, the total purchase value of equity, purchased over the last many years, under all the Adani group companies was Rs 30,127 crore, and the market value for the same as at the close of market hours on 27 January 2023 was Rs 56,142 crore.
The largest insurer also said that the total amount invested under the Adani Group amounted to Rs 36,474.78 crore as on January 31. It, however, said that its total exposure in the group till September last year was less than 1 per cent, suggesting any adverse situation would affect it marginally.
Ever since that damaging report which accused the group of share manipulation came out, a total of 10 Adani group stocks have lost over $107 billion in market capitalisation.
In the last two days, Adani Group’s flagship Adani Enterprises crashed over 50 per cent – 26.7 per cent on Wednesday and 26.70 per cent on Thursday. In the last six days, the flagship firm has lost $26.17 billion in market value while Adani Total Gas has lost over $29 billion.
