LIC Reviewing Adani Group’s Response To Short Seller Allegation Last Week
Shares of the group of companies led by Gautam Adani, Asia’s richest man, have lost nearly $66 billion as Hindenburg Research raised concerns about the business house’s debt levels and use of tax havens early last week.
Life Insurance Corporation of India (LIC) said on Monday that it Adani is reviewing the group’s response to the strong criticism made by. Will negotiate with the short seller and the management of the group in a few days.
Shares of the group of companies led by Gautam Adani, Asia’s richest man, have lost nearly $66 billion as Hindenburg Research raised concerns about the business house’s debt levels and use of tax havens early last week. Adani says it complies with all local laws and has made necessary regulatory disclosures.
“Such a situation is emerging recently and we are not sure what is the real situation… We as big investors have the right to ask relevant questions and we will definitely engage with them,” said Raj Kumar, Managing Director, LIC. Raj Kumar said. Reuters.
State-run LIC, the country’s largest insurer, says it has invested 364.7 billion rupees ($4.47 billion) in debt companies, which is about 1% of its assets under management.
“We are, however, studying the 413-page reply given by the Adani Group,” said Kumar. “We will also look at whether concerns are being addressed and why – if we think concerns have not been addressed, we will seek more clarification from them.”
According to Bombay Stock Exchange data, LIC held 4.23% in flagship Adani Enterprises, 9% in Adani Ports and Special Economic Zone, about 6% in Adani Total Gas and 3.65% in Adani Transmission at the end of December. ,
Kumar’s comments came after Adani said in a statement late on Sunday that its “strategic and long-term investors have expressed full faith and confidence in the group”. ($1 = 81.6120 Indian Rupees)
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