Kumar said the insurance company “will take a view” on its exposure to the group may be after one or two years from now. (IE)
Life Insurance Corporation of India on Thursday said it has not reduced its exposure to the Adani Group so far amid the Adani-Hindenburg controversy as the company generally buys and holds stocks for a “long time”. It has not made provisions for debt held in the embattled Group, LIC said.
LIC chairman MR Kumar said the company officials will soon hold talks with the Adani Group management to understand what is happening in the markets and how the group plans to manage the “whole thing”. “We have already reached out to them (Adani management) for the meeting.”
“We just want to understand what has been happening in the markets and why it is happening. If they (Adani Group) can throw some lights on that, it will help us understand what is going on. That is all,” Kumar told a virtual media conference after declaring the Q3 results.
“We will be calling them just to know the business profile and what they are planning to do and how are they managing the whole thing…” Kumar said.
When asked if it is a concern for LIC as some sovereign funds are exiting Adani Group, the chairman said, “At least two of the group companies we were investing in for decades were taken over by them (Adani). I am not naming them. So, that is also the part of the whole group. Even if some foreign funds are exiting, that is their way to do the business. We do not do business like that. We buy and hold for a long time. And, I am now naming it. For example, ACC Ambuja (Ambuja Cements and ACC Ltd). Why should I sell them? Or for that matter, any other of the group companies.”
Kumar said the insurance company “will take a view” on its exposure to the group may be after one or two years from now. “And, we will have to wait and see how it pans out. As of now, we don’t plan to do anything and we cannot tell you that we are buying or selling…” On details of LIC’s current exposure to Adani Group, Kumar said, “I will not be able to give the market value as of now. But, the book value is the same (compared with figures as on December 31, 2022). We are still in the green. That much I can tell you.”