The Adani Group, which is led by Gautam Adani, is a major investment for India's largest life insurer, Life Insurance Corporation of India (LIC). So much so that, as of Friday last week's market close, its holdings in five Adani Group stocks namely Adani Enterprises, Adani Green Energy, Adani Ports and Special Economic Zone (SEZ), Adani Total Gas, and Adani Transmission, were valued at Rs 73,467 crore.
According to PRIME Database, as of September 30, LIC's total equity portfolio was valued at Rs. 10.27 lakh crore. Approximately 7% of the value of LIC's whole stock portfolio was allocated to its interest in the Adani Group.
According to data collected by corporate database AceEquity, although LIC has been growing investment, Foreign Portfolio Investors (FPIs) have reduced interests in five Adani stocks in recent quarters.
The LIC recently increased its holdings in Adani Enterprises, Adani Total Gas, and Adani Transmission, the three Adani Group entities.
In the following five quarters, LIC's interest in the flagship Adani Enterprises, which was 1.32 percent as of June 30, 2021, increasd steadily to 4.02 percent as of September 30. As of September 30, LIC owned 4,58,14,954 shares of Adani Enterprises, which were worth a total of Rs 17,966 crore at the time.
As of September 30, LIC's ownership position in Adani Total Gas was 5.77 percent. Since the March quarter of 2021, it has increased each quarter. In the March quarter of 2021, LIC held a 2.11 percent investment in Adani Total Gas; by the March quarter of 2022, it had increased to 5.11 percent. As of Friday's closing, LIC had invested a total of Rs 22,706 crore in the shares.
The LIC's investment in Adani Transmission increased from 2.42 percent in the June 2021 quarter to 3.46 percent as of September 30. The value of the stake is Rs. 10,600 crore.
With a 1.15 percent interest, LIC became an investor in Adani Green Energy in the third quarter. Companies are obligated to disclose shareholders who possess more than 1% of the company. It is challenging to determine whether LIC previously owned any shares of Adani Green Energy. As of Friday, LIC owned a stake in Adani Green Energy worth Rs 3,760 crore.