LIC's Adani group portfolio value surges 51.6% at Rs 66,000 crore

Government-owned Life Insurance Corporation of India (LIC) has seen substantial gains from its investments in Adani group shares, which have experienced a significant recovery over the past year. The value of LIC's stake in Adani group companies surged by 51.6 per cent, or Rs 22,591 crore, reaching Rs 66,388 crore as of Friday's close. This compares to Rs 43,797 crore on May 31 last year, according to stock exchange data.The insurer has also strategically reduced its stake in certain Adani group companies to capitalise on the rise in share prices. LIC trimmed its stake in group flagship Adani Enterprises from 4.26 per cent to 3.93 per cent over the past year. It also reduced its holdings in Adani Ports from 9.12 per cent to 7.86 per cent and in Ambuja Cements from 6.3 per cent to 5.69 per cent, according to data submitted to the stock exchanges. Despite these reductions, the value of LIC's investments in the Adani group has increased (see chart). On Friday, the Ahmedabad-based group's 10 listed companies added Rs 84,000 crore in market capitalisation, bringing the total to Rs 17.9 trillion. This is the highest since January 24, 2023 — the day US-based short seller Hindenburg Research released a critical report on the group. It comes just before Adani Enterprises' Rs 20,000 crore follow-on public offer.