New Delhi: Amid stock market crashes, Hindenburg Research report caused more damage to Adani group stocks.
In the last two sessions, Adani group stocks have nosedived much lower than key benchmark indices, leading to huge losses to its retail and institutional investors, Mint reported.
The Life Insurance Corporation (LIC) of India is one such domestic institutional investor (DII), which has a huge shareholding in Adani group stocks.
In the past two trading days, LIC has lost Rs 16,580 crore. LIC’s combined investment in Adani group stocks has been reduced to Rs 62,621 crore (on January 27, 2023) from Rs 81,268 crore (on January 24, 2023).
Apart from LIC, no other major mutual fund has any significant exposure to Adani group shares. LIC’s total notional loss stands at Rs 18,647 crore.
According to PSU Watch, India’s biggest institutional investor, LIC held over 1 per cent stake in Adani Enterprises, Adani Green Energy, Adani Ports, Adani Total Gas, and Adani Transmission, and recently acquired cement major Ambuja Cements and ACC as of December 31, 2022.
Shares of these companies tanked somewhere between 19 percent and 27 percent in the past two trading sessions.
Hindenburg report that came out on Monday claimed that Adani Enterprises is involved in major stock manipulation and accounting fraud schemes over the course of the last few decades. Although Adani management clarified in media that day itself saying the Hindenburg Research report is stale, baseless and slams discredited allegations that have been tested and rejected by India’s highest courts. But by that time damage was done.
Shares of Adani group came under pressure after the report came out in public and some of the shares. The rout started on Tuesday and further deepened Thursday, with some units like Adani Green Energy Ltd. and Adani Total Gas Ltd. tumbling by their daily limit of 20%. Adani Enterprises fell 19%.
LIC holds 4,81,74,654 shares in Adani Enterprises, which is 4.23 per cent of total paid up capital of the company. In the last two days, the company share price has dipped from Rs 3,442 to Rs 2,768.50 apiece levels on NSE, which means Adani Enterprises shares have lost Rs 673.5 apiece in last two days.
LIC holds 19,75,26,194 company shares or 9.14 per cent stake in Adani Ports. In the last two days, Adani Port share price has tumbled from Rs 761.20 to Rs 604.50 apiece levels losing Rs 156.70 per share in two sessions.
LIC holds 4,06,76,207 shares or 3.65 per cent stake in Adani Transmission. In the last two days, Adani Transmission’s share price has tumbled from Rs 2,762.15 to ?2,014.20 apiece, losing Rs 747.95 per share in these two days.
LIC holds 2,03,09,080 shares or 1.28 per cent stake in Adani Green. The share price of the company has dipped Rs 430.55 apiece in last two days, leading to near Rs 875 crore loss in the last two straight sessions.
LIC holds 6,55,88,170 shares or 5.96 per cent stake Adani Total Gas. The company share price has dipped 963.75 apiece in the last two days, leading to near Rs 6,323 crore loss in the last two straight sessions.