- Monday, April 29, 2024
By: Shubham Ghosh
India’s Life Insurance Corporation (LIC) on Monday (30) said it was undertaking a review of the Adani Group’s response to scathing criticism by a US short-seller and would have talks with the group’s management in some days saying it has the “right to ask relevant questions” as a large investor.
Shares of companies in the Indian conglomerate, led by Gautam Adani, lost billions since the US-based Hindenburg Research flagged concerns last week about its debt levels and use of tax havens. Adani though hit back saying it abides by all local laws and has made the required regulatory disclosures.
Speaking to Reuters, LIC’s managing director Raj Kumar said, “Presently there is a situation that’s emerging and we are not sure what is the factual position… Since we are a large investor we have the right to ask relevant questions and we will definitely engage with them.”
LIC, which is India’s biggest insurer, said it invested Rs 364.7 billion in Adani companies.
“Of course we are studying the 413-page reply given by Adani Group,” Kumar was quoted as saying by Reuters.
“We will also see if the concerns are addressed – if we believe the concerns are not addressed we will seek further clarification from them,” he added.
The state-owned insurer owned a 4.23 per cent stake in the flagship Adani Enterprises as of end December, over nine per cent in Adani Ports and Special Economic Zone, nearly six per cent in Adani Total Gas, and 3.65 per cent in Adani Transmission, as per data from the Bombay Stock Exchange.
The top LIC top official’s remarks came after Adani said in a statement late on Sunday (29) that its “strategic and long-term investors have reposed complete faith and confidence in the group”, Reuters added.
