State insurer Life Insurance Corporation (LIC) Chairman M R Kumar on Friday asked the shareholders and policyholders to not worry about their investments and rumors of its overexposure to Adani Group companies, during an interview with Business Today TV. He added that there is not even 1 per cent risk for policyholders and shareholders.
Kumar said in the interview, "I 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."
LIC and SBI under scanner for investment
The Adani Group has been under severe criticism since US-based short seller Hindenburg Research released a report questioning the company's debt positioning. Since then, LIC and the State Bank of India have been under severe pressure over their investment and debt exposure in the companies owned by Adani. LIC had issued a statement to clarify that it had invested over Rs 36,000 crore in Adani Group companies.
Kumar also mentioned that the total book value of the companies in the Adani Group as of January 2023, was Rs 33,000, but of this, Rs 6,000 crore is the debt value. This, according to Kumar, is a standard debt. Talking about the discussion with the Adani Group's top management, Kuman said that they would soon contact them to get a better understanding of the issue. He also added that the company will be holding a meeting in the coming week to discuss the future plans for the situation.
Shares of Adani Group in red
A week after the release of the report, there was a massive sell-off of Adani Group shares. The shares of the group continue to be on the rise as they are on a cycle of rise and fall.
