The Adani vs Hindenburg saga has hit Indian markets which crashed by as much as 1,500 points on Friday and another 1,000 points to open on Monday, before a rebound towards the end of the day. As all Adani Group firms except for two remain in the red, investors are concerned about the rout, and exposure of banks including the State Bank of India and PSUs such as LIC to the conglomerate is being questioned. This has prompted the Life Insurance Corporation of India to review Adani Group's response to Hindenburg, as it has been a large investor of the company.
Having infused Rs 36,470 crore into the port to power behemoth, LIC has decided to monitor Adani's 413-page response to serious allegations of fraud and market manipulation. The investment accounts for 1 per cent of LIC's assets under management, and the insurer also plans to meet the top management of the Adani Group. Although LIC isn't sure about the factual position, it says that the company has the right to ask relevant questions.
LIC has said that it will seek clarification from Adani if all concerns aren't addressed in the 413-page response, days after SEBI increased scrutiny of the group. The Rs 20,000 crore FPO was able to help two Adani stocks close in the green, but didn't offset the Rs 1.53 lakh crore loss in market value.
