LIC Portfolio Rises As Adani Group Stocks Surge

Life Insurance Corporation of India (LIC) witnessed a significant boost in its portfolio as the stocks of Adani Group soared on Monday. This rally in Adani Group stocks added a substantial value of Rs 3,447 crore to LIC's investment holdings. The surge came in response to positive developments surrounding regulatory concerns and the potential monetization of non-core assets within the Adani Group.

On May 22, shares of Adani Group's listed companies soared up to 19% after the Supreme Court-appointed AM Sapre committee concluded that it was not possible to determine that there was a regulatory breach in Hindenburg's price manipulation accusation. Adani shares rose after a media report claimed that the company was considering monetising certain real estate assets deemed non-core to its business.

Adani Enterprises was the biggest gainer with a gain of 18.84 percent. As of March 31, 2023, LIC owned 4.26 percent of the company. Adani Ports rose 6.03 percent in Monday's trading. According to data, the insurance giant owned 9.12% of the company in Q4FY23.

Adani Transmission, Adani Total Gas, and Adani Green Energy all exceeded the 5% threshold. On May 22, Ambuja Cement and ACC both gained 5% and 4.93%, respectively. As of March 31, 2023, LIC owned more than 1% of the companies. The benchmark BSE Sensex, on the other hand, closed 234 points, or 0.38 percent, higher at 61,963.68.

As a result, the market value of LIC's Adani stock holding increased to Rs 43,325.39 crore on May 22 from Rs 39,878.68 crore on May 19.

In the case of Adani Ports, Jefferies stated that the company is India's largest port operator by volume, with a commanding 22% market share. It stated that management is hoping to exploit its solid balance sheet to profit from gradual volume recovery as global container rates reduce. According to Jefferies, the company is also trying to expand in logistics/warehousing to provide customers with end-to-end solutions.