LIC is examining Adani Group’s denial of a short seller’s claim
- ByStartupStory | January 31, 2023
The Adani Group’s response to harsh criticism from a U.S. short-seller is being examined by the state-run Life Insurance Corporation (LIC), India’s largest insurer, which will conduct talks with the group’s management in the coming days.
The organization, in which LIC has invested more than $4 billion, has lost around $66 billion since Hindenburg Research raised questions about the business house’s debt levels and usage of tax havens early last week.
Gautam Adani, the richest man in Asia, formed Adani, which claims to follow all local laws and have made all required regulatory disclosures.
“Presently there is a situation that’s emerging, and we are not sure what is the factual position … Since we are a large investor, we have the right to ask relevant questions and we will definitely engage with them,” LIC Managing Director Raj Kumar told Reuters.
According to LIC, it has put around 1% of its managed assets, or 364.7 billion rupees ($4.47 billion), into Adani enterprises.
“Of course, we are studying the 413-page reply given by Adani Group,” Kumar said on Monday about the group’s response to concerns raised by Hindenburg.
“We will also see if the concerns are addressed. If we believe the concerns are not addressed, we will seek further clarification from them.”
According to information from the Bombay Stock Exchange, LIC owned 4.23% of the flagship Adani Enterprises as of the end of December, as well as more than 9% of Adani Ports and Special Economic Zone, nearly 6% of Adani Total Gas, and 3.65% of Adani Transmission.
Adani stated in a statement late on Sunday that its “strategic and long-term investors have reposed total faith and confidence in the group,” which prompted Kumar’s remarks.
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