LIC loses Rs 7,850 crore after Adani bribery issue

Life Insurance Corporation of India (LIC), regarded as one of the most trusted financial institutions by the Indian public, suffered a shocking $920 million (Rs 7,850 crore) loss in the value of its Adani Group holdings within just four hours of trading on November 21, 2024. This financial shockwave followed the U S indictment of Gautam Adani and the Adani Group on charges of running a bribery scheme to secure lucrative government contracts.

The meltdown impacted LIC's stakes in key Adani firms, including Adani Enterprises, Adani Ports, Adani Green Energy, ACC, and Ambuja Cements, reducing the portfolio’s value from Rs 55,694 crore on November 19 to Rs 47,847 crore.

A Larger Trend of Losses This sharp decline adds to LIC's ongoing woes, as its total losses in Adani investments have now surpassed $1.85 billion (Rs 15,637 crore) over the past two months. LIC’s largest stake lies in Adani Ports (7.86 percent and the cement giants ACC and Ambuja Cements (11.46 per cent combined). However, its smallest holding, Adani Green Energy (1.36 percent, has been hit hardest by the market rout. With LIC holding a combined 34.19 percent stake across Adani companies, the indictment has raised alarms about its exposure to the group amid escalating controversies.