The Life Insurance Corporation of India (LIC), a state-owned insurance and investment company in India, was established in 1956. It is the largest life insurance company in India, with a market share of around 70%.
LIC provides a range of insurance products to its customers, including life insurance, health insurance, pension plans, investments, and savings products.
LIC is known for its traditional insurance policies, which provide long-term savings and protection to policyholders. It also offers unit-linked insurance plans, which provide a combination of insurance and investment under one policy.
In addition to its insurance business, LIC has a sizable presence and engages in investment activities in the Indian capital market.
It invests in a wide variety of assets, including government bonds, corporate bonds, equities, and real estate.
LIC is a trusted brand in India and is known for its customer-centric approach. It has a huge network of agents and branches across the country, making it convenient for millions of customers.
The company is committed to providing financial security and peace of mind to its customers and has a reputation for providing prompt and efficient claim settlement.
LIC released a statement and made it clear that the state insurer has made more investments than Rs 36,000 crore in Adani Group companies a week after the Hindenburg report was published, which caused a significant sell-off of Adani Group shares in the stock market.
Amidst rumors of its overexposure to the Adani Group companies, state insurer Life Insurance Corporation (LIC) Chairman M R Kumar said on Friday that shareholders and policyholders shouldn’t be concerned about their investments.
Since US-based short seller Hindenburg Research in a thorough report questioned the debt positioning of the group companies, the Adani Group has come under fire.
Due to their investments and debt exposure in Gautam Adani-owned businesses, LIC and State Bank of India have come under scrutiny ever since the report was published on January 24.
I like to convince the shareholders and policyholders by telling them not to worry. There is not even a 1% risk for the policyholders or shareholders. No impact will be felt on the investments themselves.
We’ll make sure that this problem is resolved. This is not a major issue. A mere drop in the ocean, “In a personal conversation with Business Today TV Managing Editor Siddharth Zarabi, Kumar said.
LIC released a statement and clarified that the state insurer has invested more than Rs 36,000 crore in Adani Group companies a week after the Hindenburg report was published, which caused a significant sell-off of Adani Group shares in the stock market.
Over the past several years, all of the Adani Group companies’ equity purchases have totaled more than Rs 36,000 crore, and as of January 27, the market value was Rs 56,142 crore.
“The Adani Group’s companies have a blended book value of Rs 33,000 crore as of January 2023.
We’ve already talked about this. The debt value of this is 6,000 crore rupees. In the interview, Kumar said that the effects on the economy are also standard debt.
When questioned about meeting with the Adani Group’s top executives to discuss the entire matter, Kumar responded: “To better understand the overall situation surrounding the recent events, the company will soon get in touch with the top management of the Adani Group.”
“Our investment team will meet with them and other officials to discuss the situation’s plans in a week or ten days.”
In a press conference on Thursday, Kumar stated that he would decide on the company’s investment in the Adani Group in two to three years after meeting with the management of the Adani Group to assess the market.
On February 7, Bhagwat Kisanrao Karad, the Union Minister of State for Finance, informed the Parliament that the LIC had spent Rs 30,127 crore over the years to buy equity interest in several Adani Group companies.
In answer to a question in the Rajya Sabha, Karad stated that as of December 31, 2022, LIC’s total holding in the Adani holding company, which includes both equity and debt, was Rs 35,917 crore.
The plan is based on the fact that as of the close of market hours on January 27, 2023, there were Rs. 56,142 crores, the minister said.
“The total amount of equity, acquired in the last few years, across all the Adani Group companies, is very huge and amounts to Rs. 30,127 crores,” he added.
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