Adani's stocks were dropped like hot potatoes by investors after the Hindenburg report turned up the heat against it. But it was able to raise cash from a stake sale to US-based GQG Partners, which expressed confidence about its assets including ports and highways.
Despite concerns about the exposure of state-owned banks and insurers to Adani, the Life Insurance Corporation of India has increased its stake in the conglomerate.
Confidence in Adani intact
It bought 357,500 shares of Adani Enterprise to increase its holding from 4.23 per cent to 4.26 per cent.
Among other group firms, LIC bought Adani Green, Adani Transmission and Adani Total Gas stocks, while trimming stakes in Adani Ports along with Ambuja and ACC.
This adds to the LIC's holding worth Rs 30,127 crore in the Adani Group, which had raised eyebrows as the firm's stocks tumbled down.
Retail investors bag Adani stocks at lows
LIC has justified the investments by citing a long-term outlook, and also allayed fears by clarifying that its exposure to Adani is less than a percentage of its total assets under management.
As the prices of Adani Group stocks fell dramatically, its investors with shares worth less than Rs 2 lakh went up three times.
As retail investors now hold 3.41 per cent comepared to 1.86 per cent in Adani, Mutual Funds slashed their stake from 1.19 per cent to 0.87 per cent.
