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LIC's investment in Adani Group companies skyrocket by 51.6%
02 Jun 2024

The Life Insurance Corporation of India (LIC) has seen a significant surge in the value of its investments in Adani Group shares.

The stake value has soared by 51.6%, or ₹22,591 crore, to reach ₹66,388 crore as of Friday's close.

This marks a substantial increase from ₹43,797 crore on May 31 last year according to stock exchange data.

LIC trims stake in Adani Group despite rising share prices
Strategic reduction

In a strategic move, LIC has lowered its stake in certain Adani Group companies to capitalize on the rise in share prices.

Over the past year, it trimmed its stake in group flagship Adani Enterprises from 4.26% to 3.93%.

Similarly, holdings in Adani Ports were reduced from 9.12% to 7.86% and Ambuja Cements from 6.3% to 5.69%.

Adani Group's m-cap reaches record high
Market surge

Despite LIC's stake reductions, the value of its investments in the Adani Group has significantly increased.

On Friday, the 10 listed companies of the Ahmedabad-based group added ₹84,000 crore in market capitalisation, reaching a total of ₹17.9 trillion —the highest since January 24, 2023.

This surge occurred after a critical report by US-based short seller Hindenburg Research and just before Adani Enterprises's ₹20,000 crore follow-on public offer.

Resilience amid setbacks and future plans
Growth strategy

According to Jefferies, a US-based investment bank, the Adani Group has remained resilient despite setbacks from the short-seller report.

The group turned this "setback into a comeback," with a 40% year-on-year (YoY) growth in earnings before interest, tax, depreciation and amortisation (EBITDA) in FY24.

The group is now aiming for $90 billion (₹75,114 crore) in capital expenditure over the next decade.

Adani Enterprises's investment in green energy and infrastructure
Expansion plans

Adani Enterprises is investing in airports, green hydrogen, data centers, and the petrochemical business.

The company plans to scale its captive manufacturing capacity toward green hydrogen production by FY27, and commission the Navi Mumbai Airport by March next year.

Ambuja Cement, owned by the Adani family, is targeting a capacity expansion from 70 million tons per annum (mtpa) to 140 mtpa by 2030.