LIC is on the verge of losing profit earned over the years in Just 10 days in these 4 Adani stocks.
While LIC has a stake in seven Adani stocks. It has a major estimated investment of Rs 24,000 crore in 4 stocks. These stocks are Adani Enterprises, Adani Total Gas, Adani Green Energy, and Adani Transmission.
The insurance major Life Insurance Corporation’s investment profits in Adani Group are eroding rapidly as the stocks are touching a new low every day. While LIC has a stake in seven Adani stocks. It has a major estimated investment of Rs 24,000 crore in 4 stocks. These stocks are Adani Enterprises, Adani Total Gas, Adani Green Energy, and Adani Transmission. Considering that LIC has not reduced its stake in these four Adani stocks after December 2022. LIC’s investment is now valued at Rs 27,000 crore based on the current market price. BT research has made this calculation by taking the average acquisition price and the current market price of these four stocks.
Since the short seller Hindenberg report on Adani stocks came into the public domain on January 24, 2023, the stocks of the Adani group have been creating a new low every day. Some of Adani’s stocks have plummeted approx 50 per cent since Jan 24. India’s biggest Institutional Investor LIC in a statement has said that “LIC’s total purchase value of equity purchased over last many years under all the Adani group companies is Rs 30,127 crore.”
In Adani Transmission, LIC’s average cost per share is estimated at Rs 840 and the total investment value is Rs 3415 crore. This investment is currently valued at Rs 6334 crore as on Feb 02, 2023, as Adani Transmission share is priced at Rs 1557.25 down 10 per cent from yesterday’s close price. While in Adani Total Gas, the estimated average cost per share is Rs 1,300 and the total investment value is Rs 8,525 crore. This investment is currently valued at Rs 11,225 crore as Adani Total Gas is currently trading at Rs 1711.50 down 10 per cent from yesterday’s close price.
In Adani Green Energy, the approximate average cost per share for LIC is Rs 1800 and the total investment value is Rs 3610 crore. This investment is currently valued at Rs 2108.2 crore as on Feb 02, 2023, as Adani Green Energy is currently trading at Rs 1038.05 down 10 per cent from yesterday’s close price. In the flagship company of the Adani group, Adani Enterprises, LIC has an average cost per share estimated to be Rs 1720 and a total investment value is Rs 8285 crore. This investment is currently valued at Rs 9545.6 crore as Adani Enterprises stock closed trading at Rs 1564.70 down 26.5 per cent from yesterday’s close price.
In these four stocks of the Adani group, the LIC is expected to have invested approx Rs 23,840 crore. As on Feb 02, 2023, This investment is currently valued at Rs 27,200 crore. Except for Adani Green Energy and Adani Enterprises LIC is still sitting on profits on the other two investments. However on 24 Jan when this report came the value of LIC’s investment in these four companies was Rs 57166 crore, with a profit of more than 33,000 crore which now stands reduced at Rs 3,360 crore. Approx Rs 30,000 crore profit made over the years by LIC in these four stocks for LIC has vanished in just 10 days.
