In just two trading sessions, the continuous decline in Adani Group equities severely dented the portfolios of their investors. Life Insurance Corporation of India (LIC), the largest institutional investor in the nation, is one of those investors. From Rs 81,268 crore on January 24, 2023, LIC’s total investment in Adani group equities fell to Rs 62,621 crore on January 27, 2023, representing a notional loss of Rs 18,647 crore.
Details about as Adani Group stock prices plummet, LIC loses Rs 18000 crore in just 2 days
According to data accessible with Ace Equity, as of December 31, 2022, LIC owned over 1% of Adani Enterprises, Adani Green Energy, Adani Ports, Adani Total Gas, Adani Transmission, as well as recently purchased cement giant Ambuja Cements and ACC. Between 19 and 27 percent of these companies’ shares fell in the last two trading sessions.
After a report by Hindenburg Research asserting that the Indian behemoth had engaged in stock manipulation and an accounting fraud scheme over the course of the previous few decades, the company’s shares came under pressure. According to a media release from Jugeshinder Singh, Group CFO at Adani, “The article is a vicious blend of selected disinformation and old, unsubstantiated, and disproven charges that have been put to the test and dismissed by India’s highest courts.”
He continued by saying that the timing of the report’s release shows a brazen, malicious purpose to harm the Adani Group’s reputation with the primary goal of jeopardising the impending follow-on public offering from Adani Enterprises, the largest FPO ever in India. The subscription period for the Rs 20,000 crore FPO from Adani Enterprises began on January 27.
Since January 24, the total amount of LIC’s investment in Adani Total Gas has decreased by Rs 6,237 crore. Adani Enterprises (down Rs. 3,279 billion), Adani Ports (down Rs. 3,205 billion), Adani Transmission (down Rs. 3,036 billion), Ambuja Cements (down Rs. 1,474 billion), Adani Green Energy (down Rs. 871 billion), and ACC came in second and third, respectively (down Rs 544 crore).
Investors should wait for more clarification and let the situation play out, according to Narendra Solanki, Head-Equity Research, Anand Rathi Shares & Stock Brokers, who was speaking to Business Today TV. Then, based on the fresh information, one can create an opinion about the stocks of the Adani Group. Market participants were aware of the majority of the problems.
The market value of the 10 listed Adani Group firms fell by about Rs 4 lakh crore, from Rs 19 lakh crore on January 24, 2023, to nearly Rs 15 lakh crore on January 27. The benchmark equity index, the BSE Sensex, dropped by 1,647 points, or 2.70 percent, to close at 59,330.90.