The government-run Life Insurance Corporation of India (LIC) is seeking to set limitations on its debt and equity exposure to businesses in an effort to decrease risk concentration in response to criticism of its investments in Adani group companies, according to sources.
After the Adani group’s worth fell by over $100 billion as a result of scathing charges made by American business Hindenburg Research, LIC came under fire for having more than $4 billion in exposure to companies from the Adani group.
Once the LIC board has approved the caps, they will further reduce the insurer’s exposure. It was be recalled that a January 24th, report by Hindenburg saw severe price destruction in Adani stocks. According to Hindenburg, Adani Group predictably tried to lead the focus away from substantive issues and instead stoked a nationalist narrative, claiming its report amounted to a “calculated attack on India.”
“In short, the Adani Group has attempted to conflate its meteoric rise and the wealth of its Chairman, Gautam Adani, with the success of India itself,” Hindenburg had said.
The Adani Group has denied most of the allegations and its stock prices have seen some recovery.