Adani Group exposure at 0.97% of total AUM: LIC

Life Insurance Corporation of India (LIC) on Monday said its exposure to Adani Group is 0.97% of its total assets under management (AUM) at book value.

The total purchase value of equity, purchased over the last many years, under all the Adani group companies is ₹30,127 crore and the market value for the same as at close of market hours on January 27, 2023 was ₹56,142 crore, the state-run insurer says in a statement.

The total assets under management of LIC stood at over ₹41.66 lakh crore as of September 30, 2022.

LIC's total exposure in Adani Group companies under equity and debt is ₹35,917.31 crore as on December 31, 2022.

The total amount invested in Adani Group amounts to ₹36,474.78 crore as on date, LIC says, adding that these investments have been made over a period.

Credit ratings of all of the Adani debt securities held by LIC are ‘AA’ and above which are in compliance with the IRDAI investment regulations as applicable to all life insurance companies, the statement adds.

Stating that it follows a strict investment framework compliant with applicable norms, LIC says the available solvency margin of the company as of September 2022 was well above the target solvency level of 160%.

India's largest insurer owns a 4.23% stake in Adani Group's flagship firm Adani Enterprises. LIC also holds 9% in Adani Ports and Special Economic Zone (APSEZ), 3.7% in Adani Transmission, 1.3% in Adani Green Energy and 6% in Adani Total Gas.

Last week, LIC pumped more money into Adani Enterprises ahead of its ₹20,000 crore follow-on public offer (FPO). India's largest life insurer invested about ₹300 crore in buying 9,15,748 more shares as an anchor investor in India's largest-ever secondary share sale. The FPO opened for subscription on January 27 and will close on January 31.