LIC officials have met with the top management of Adani Group and are happy with the outcome of the meeting, said LIC chairperson MR Kumar on Sunday while addressing the media at 22nd Global Conference of Actuaries in New Delhi.
“I can only confirm that the conversation has happened to the department. But there’s nothing you can state as of now. But yeah, we’ve had a meeting…and we are quite happy about this meeting,” said Kumar.
Last month at the earnings conference Kumar said that the LIC management would soon get in touch with the top management of the Adani Group and seek clarification amid high volatility in Adani shares.
The port-to-power conglomerate has been under fire since US-based short seller Hindenburg Research accused the Gautam Adani-led group of stock manipulation, running offshore shell companies for round-tripping, and misusing corporate governance practices.
Since the report was made public, LIC’s exposure to Adani group firms’ stock has come under scrutiny. The insurance major has invested in seven of 10 listed companies of the Adani Group. It holds 1.28 per cent in Adani Green Energy, 9.14 per cent in Adani Ports & SEZ. In the last one month, shares of Adani Ports have risen 25.36 per cent. On Friday, the shares of Adani Ports rose nearly 10 per cent to settle at Rs 684.35 while Adani Green Energy jumped 5 per cent to close at Rs 562.
“I would like to tell the shareholders and policyholders that there is nothing to worry. There is not even 1 per cent risk for the policyholders, shareholders. There will be no impact on the investments as such whatsoever. We will see that this issue is taken care of. This is not such a big thing. It is just a drop in the ocean,” Kumar had said in a chat with BT TV.
Recently, the apex court, in its verdict on the Adani-Hindenburg case, has appointed a 6-member committee headed by a retired Supreme Court judge. Along with SEBI, the committee will conduct a parallel probe into whether the Adani Group or other companies contravened capital market regulations. In a major decision, the Supreme Court has ordered a review of the regulatory mechanism governing the Indian capital market.
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