LIC increases holdings in Adani stocks despite Hindenburg controversy

Life Insurance Corporation of India (LIC), one of the investors in the Indian stock market, has increased its stake in four Adani Group companies despite the Hindenburg controversy that dragged down Adani stock prices.

In the March quarter, LIC acquired 357,500 shares of Adani Enterprises, thereby increasing its share in the company from 4.23 percent in the previous quarter to 4.26 percent. The PSU insurer also raised its stakes in Adani Transmission (from 3.65 percent to 3.68 percent), Adani Green (from 1.28 percent to 1.36 percent), and Adani Total Gas (from 5.96 percent to 6.02 percent) during the quarter.

However, LIC reduced its stake in Adani Ports and Ambuja Cements. There was no change in LIC’s stake in ACC. It is not clear whether the share transactions took place before or after the release of the Hindenburg report.

Small retail investors showing trust in Adani Enterprises stocks

While some institutional investors are reducing their exposure to Adani stocks, small retail investors are showing trust in Adani Enterprises. The percentage of the company’s shares held by them increased from 1.86 percent to 3.41 percent.

On the other hand, the number of mutual funds investing in Adani Group companies has decreased from 31 to 27. The mutual funds’ investment in the Adani company also reduced.

Amid controversy, Adani Group has struck a deal worth Rs 15,000 crore with US-based GQG Partners. Adani Enterprises is one of the four companies in which the promoters have pared their stake.

Adani’s net worth increases

As of today, six Adani Group companies were trading in the green, with Adani Enterprises’ share price increasing by 2.10 percent.

Gautam Adani, whose net worth dipped significantly over the past month, has begun to climb up again, making him one of the top 25 richest persons in the world’s billionaire list following the surge in stock values.

The businessman, who recently slipped out of the world’s top 35 billionaires list, is slowly climbing up in the rankings.

With a current net worth of USD 47.1 billion, he is in the 24th position on the list.

Following LIC’s increased stake in Adani Group companies, Congress President Mallikarjun Kharge started asking questions that why the public sector financial giant has increased stakes in the group despite the Hindenburg controversy.