Adani Ports, Adani Enterprises, Adani Energy Solutions: LIC Sold 3.73 Cr Adani Shares In Q3 To Book Profit

Adani shares have remained hot stocks this year and remained the center of attention even in 2023 following the Hindenburg report. While some think, the US Short Sellers controversial report has done more good to shares of Adani group companies some think the Gautam Adani-led Indian conglomerate is yet to win the confidence of investors.

On Friday, Adani group stocks traded mixed amidst positive trading on Dalal Street after a three day losing streak. It has come to the limelight that India's life insurance giant Life Insurance Corporation (LIC) sold 3,72,78466 shares of the three Adani companies - Adani Energy Solutions, Adani Enterprises and Adani Ports And Special Economic Zone, during the quarter. LIC sold these shares at a time when Adani group stocks saw an upside and booked profits. This makes it evident that the state-owned insurance company booked significant profit by selling shares of the three Adani groups rallied in the Indian equity market.

As per the December quarter shareholding pattern, LIC pared stakes in Adani Energy Solutions, Adani Enterprises, and Adani Ports by selling 3,72,78466 shares in these three Adani companies during the quarter. Besides, during this period the company bought 4,500 shares of Ambuja Cements.

It is worth mentioning that, besides Rajiv Jain's GQG Partners, the PSU company was one of few companies that showed confidence in Adani stocks, when shares of Adani companies were going through a rough patch last year.

As per reports, LIC had earlier said that the market value of all its investments in Adani Group companies stood at Rs 56,142 crore as of January 27th, 2023.

The insurance giant's holding in Adani Group rose to Rs 58,374 crore at the end of the December 2023 quarter compared to Rs 45,025 crore at the end of September 2023.

In the preceding quarter, LIC's stake in ACC, Adani Green Energy, and Adani Total Gas remained the same. On a quarterly basis, Adani Green turned out to be the best-performing Adani stock in LIC's kitty as it rose over 70% in the third quarter.

Adani Energy Solutions

In the December quarter, LIC slashed its stake in Adani Energy Solutions from 3.68% in the September quarter to 3% in Q3. During the quarter Adani Energy Solutions shares gained 42%.

Adani Enterprises

Adani Enterprises, saw LIC ownership going down from 4.23% to 3.93% QoQ. The stock gained almost 29% in Q3.

Adani Ports

LIC also reduced its stake in Adani Ports from 9.07% in Q2 to 7.86% in Q3 as Adani Ports shares rallied over 46% during the quarter. LIC is said to have made the biggest investment in Adani Ports, compared to other group companies with the stake being valued at over Rs 20,000 crore.

SC On Adani-Hindenburg Row:

It must be noted that earlier this year, in a big relief to Adani group chairman Gautam Adani, the Supreme Court refused to order an SIT probe into allegations leveled by the US Short-seller Hindenburg Research against the Gautam Adani-led Indian conglomerate. While announcing its verdict on a batch of petitions seeking examination of allegations of fraud made against Adani group firms in the Hindenburg Research report the apex court dismissed reliance on a third-party report and affirmed faith in SEBI's handling of the case.

The SC said that there are no valid grounds to direct the regulator to regulate its amendments made in the exercise of delegated legislative powers.

While some see the top court order as a clean chit to the Adani Group, however the ball is now in Sebi's court as it is yet to complete its investigation in the case. SEBI has completed 22 out of the 24 investigations into the allegations levelled by Hindenburg Report against the Adani group. The apex court has now asked SEBI to complete the rest two pending investigations preferably within the next 3 months.