State-backed Life Insurance Corp (LIC) managing director and chief executive officer Siddhartha Mohanty reiterated that the insurance company is positive on the investments in the Adani group amid heavy beating in the billionaire Gautam Adani-led conglomerate's stocks on February 1.
Speaking to CNBC-TV18, Mohanty added, "Adani investments are within our prudent norms." adding, "We talk to companies that we invest in as a routine."
Mohanty's comments in the wake of a US-based short-seller report by Hindenburg Research last week that alleged improper use by the group of offshore tax havens and stock manipulation, as well as concerns about high debt and the valuations of seven listed Adani companies.
LIC has invested more than $4 billion in the group, which has lost about $66 billion since Hindenburg Research.
Earlier too, LIC had issued a clarification regarding its exposure to the Adani group of companies in the light of huge volatility in the share prices of the Adani group of companies.
LIC has clarified that the total value of Adani group company shares it has purchased over the last many years is Rs 30,127 crore. This exposure by LIC in the Adani group as on date is 0.975 percent of the total assets under management (AUM) at book value.
Meanwhile, most Adani Group stocks slumped on February 1 as concerns on the stock volatility continued. The rout in the conglomerate's biggest companies have now deepened to $84 billion.
Adani Enterprises crashed over 26 percent to close at Rs 2,180.20 apiece on BSE amid report that Credit Suisse has stopped accepting bonds of Adani companies as collateral for margin loans. Another group stock Adani Ports also hit 20 percent lower circuit to end at 492.15 apiece. The group's fall further intensified as Ambuja Cements slumped 16.56 percent to close at Rs 334.60, while ACC declined 5.96 percent to Rs 1,852.
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