As Adani shares fall, LIC loses Rs 18,000 crore.

LIC has a significant investment in the stocks of the Adani group. It shouldn’t come as much of a surprise, because no other mutual funds have a major exposure to the shares of the Adani group. LIC’s aggregate stake in Adani group equities dropped from Rs 81,268 crore to Rs 62,621 crore during the course of the past two days.

The Life Insurance Corporation of India (LIC) has incurred significant losses as a result of its significant exposure to the equities of the Adani group. During the course of the previous two business days, LIC’s aggregate investment in Adani group equities dropped from Rs 81,268 crore (on January 27, 2023) to Rs 62,621 crore (on January 27, 2023). (on January 24, 2023). No other large mutual fund company, with the exception of LIC, has any direct exposure to the shares of the Adani group. The total amount of notional loss incurred by LIC is currently Rs 18,647 crore.

As of the end of the year 2022, LIC, which is the largest institutional investor in India, held a stake of more than one percent in Adani Enterprises, Adani Green Energy, Adani Ports, Adani Total Gas, and Adani Transmission. Additionally, LIC recently obtained cement major Ambuja Cements and ACC. The stock prices of these companies have dropped anywhere from 19 percent to 27 percent over the course of the previous two trading sessions.

LIC: The risk to the public purse

LIC is one of the most significant financial institutions in India due to the fact that it has more than 250 million policyholders across the country and has assets under management that are comparable to those of the mutual fund industry. It is important to note that no other large mutual fund, with the exception of LIC, has any significant exposure in the shares of the Adani group. Its involvement with the Adani Group, whose development aims are known to be closely aligned with Prime Minister Narendra Modi’s, is also emblematic of the tycoon’s political clout because of this alignment.