NEW DELHI: LIC, India’s state-owned insurance giant, has reported a significant 59% increase in the value of its investments in Adani group companies during the fiscal year 2023-24. This surge comes as the conglomerate rebounded impressively following a period of scrutiny triggered by a controversial short seller report.
Data from stock exchanges reveals that the value of LIC’s investments in seven Adani group companies surged from Rs 38,471 crore as of March 31, 2023, to Rs 61,210 crore by March 31, 2024, marking a substantial increase of Rs 22,378 crore.
Last year, LIC faced considerable scrutiny over its decision to invest in the Adani group amidst a heated political debate. Allegations of stock manipulation, fueled by a report from Hindenburg, intensified the scrutiny surrounding LIC’s investments in the conglomerate.
Despite the initial challenges and controversies, the significant uptick in the value of LIC’s investments underscores the remarkable recovery of the Adani group companies. The surge reflects renewed investor confidence in the conglomerate’s prospects and its ability to weather adverse market conditions.
The resurgence of Adani stocks and the substantial increase in LIC’s investments highlight the resilience of both the conglomerate and India’s insurance giant amidst a volatile economic landscape. Moving forward, market observers will closely monitor developments in the Adani group and LIC’s investment strategies amid evolving market dynamics and regulatory scrutiny.
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Sources: PTI