Life Insurance Corporation of India (LIC) on Saturday rejected a report published in The Washington Post, alleging that Indian officials had nudged the state-owned insurer to invest about $3.9 billion, or nearly ₹34,200 crore, into Adani Group companies.
LIC said the report was “false, baseless, and far from the truth.”
The insurer said no document or proposal, as suggested in the US newspaper’s report, was ever drafted by government officials for the corporation to infuse funds into the Adani Group.
The Post report cited LIC’s investment in the Adani Group in May this year, when the insurer picked up the entire ₹5,000 crore worth of Adani Ports and SEZ (APSEZ) bonds.
The bonds offered a 7.75% coupon and carried ‘AAA’ credit rating.
India’s opposition parties had criticised LIC’s investment in the bond issue, calling it a misuse of public funds.
The government holds a 96.5% stake in the insurance company, which went public in May 2022.
LIC’s exposure to the Adani Group is lower compared with its investments of about ₹1.3 lakh crore in the Tata Group and ₹42,600 crore in the Aditya Birla Group, he pointed out.
The Washington Post’s Friday report alleged that the investment decisions in LIC are influenced by external factors, and that finance ministry officials advised the insurer to invest heavily into Adani Group companies.
Such claims appear intended to malign its transparent decision-making process and tarnish the institution’s reputation, as well as the strong financial sector foundation of India, LIC said in a statement.
The insurer said all its investment decisions are taken independently, in line with its board-approved policies and after thorough due diligence. Neither the Department of Financial Services nor any other authority influences its investment choices, it clarified.
The insurer’s total equity investment has a book value of ₹7.3 lakh crore, with a market value of about ₹15 lakh crore.
“The investment (in Adani bonds) was made through an electronic bidding process, consistent with LIC’s requirement for long-duration, high-rated infrastructure bonds,” the person cited above said.
LIC makes annual investments of around Rs 5.5 lakh crore, and the amount mentioned in The Washington Post report represents less than 1% of its total annual investments, the person added.
LIC has invested in equity and debt of several Adani group companies but so far has not invested in Adani Green Energy.
LIC said the report was “false, baseless, and far from the truth.”
The insurer said no document or proposal, as suggested in the US newspaper’s report, was ever drafted by government officials for the corporation to infuse funds into the Adani Group.
The Post report cited LIC’s investment in the Adani Group in May this year, when the insurer picked up the entire ₹5,000 crore worth of Adani Ports and SEZ (APSEZ) bonds.
The bonds offered a 7.75% coupon and carried ‘AAA’ credit rating.
India’s opposition parties had criticised LIC’s investment in the bond issue, calling it a misuse of public funds.
The government holds a 96.5% stake in the insurance company, which went public in May 2022.
Decisions Taken Independently
Countering the allegations, an LIC official said there have also been several instances of corporate bond issues where the insurer had been the sole bidder, receiving 100% allocation of securities through competitive bidding.LIC’s exposure to the Adani Group is lower compared with its investments of about ₹1.3 lakh crore in the Tata Group and ₹42,600 crore in the Aditya Birla Group, he pointed out.
The Washington Post’s Friday report alleged that the investment decisions in LIC are influenced by external factors, and that finance ministry officials advised the insurer to invest heavily into Adani Group companies.
Such claims appear intended to malign its transparent decision-making process and tarnish the institution’s reputation, as well as the strong financial sector foundation of India, LIC said in a statement.
The insurer said all its investment decisions are taken independently, in line with its board-approved policies and after thorough due diligence. Neither the Department of Financial Services nor any other authority influences its investment choices, it clarified.
The insurer’s total equity investment has a book value of ₹7.3 lakh crore, with a market value of about ₹15 lakh crore.
“The investment (in Adani bonds) was made through an electronic bidding process, consistent with LIC’s requirement for long-duration, high-rated infrastructure bonds,” the person cited above said.
LIC makes annual investments of around Rs 5.5 lakh crore, and the amount mentioned in The Washington Post report represents less than 1% of its total annual investments, the person added.
LIC has invested in equity and debt of several Adani group companies but so far has not invested in Adani Green Energy.
