LIC's investments in the crisis-ridden Adani Group has been under tremendous criticism after its investments in Adani-related entities lost almost 60 per cent of its value since January 25
Life Insurance Corporation of India (LIC) informed on Thursday that its investments in Adani Group companies are still in green, implying that the insurer is sitting on unrealised gains from its Adani investments. This was conveyed during LIC's earnings call that took place after the state-backed insurer reported that its income from investments rose to Rs 84,889 crore from Rs 76,574.24 crore a year ago.
LIC's investments in the crisis-ridden Adani Group has been under tremendous criticism after its investments in Adani-related entities lost almost 60 per cent of its value since January 25. The insurer clarified that only 0.97 per cent of its total book value is invested in Adani Group companies.
LIC Chairman M R Kumar said that LIC will meet Adani Group's top management soon.
However, LIC stated that it cannot give the market value of its investment in Adani as of now. The state-backed insurer said that the market value of its Adani investments is higher than the book value of its stake.
Responding to media's query regarding how multiple foreign investors are exiting Adani companies, LIC said, "Even if some foreign funds are exiting that is their way of doing business we do not do it that way."
Further, the insurer re-iterated its previous claim that it invests with a long-term view. As such, investments in ACC and Ambuja Cements make sense, it added.