Amid Market Loss, LIC To Raise Hindenburg Report Allegations With Adani Group

Share price of Adani Enterprises and Adani Ports hit 10 percent upper circuit on Monday.

Life Insurance Corporation (LIC), India's largest public sector investor, has broken its silence on the fiery allegations levelled against Adani Group.

(Photo: The Quint)

Life Insurance Corporation (LIC), India's largest public sector investor, has broken its silence on the fiery allegations levelled against Adani Group.

On the cards: LIC said on Monday, 30 January, that it is looking to have a talk with the Gautam Adani-run conglomerate, according to a report by Reuters.

• "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 Managing Director Raj Kumar was quoted as saying in the report.

Between the lines: LIC's statement comes a day after the Adani Group put out a detailed response to the Hindenburg Research report, which accused the company of carrying out an elaborate 'con'.

• Stocks of several Adani Group companies tanked on Monday

• LIC is the single largest non-promoter domestic shareholder in the Adani Group's five largest companies

• It reportedly lost Rs 16,627 crore due to the fall in Adani’s holdings

Spiralling down: Adani Total Gas, Adani Transmission, and Adani Green Energy shares tanked by 20 percent on the BSE in the intra-day trade on Monday, reported Business Standard.

• The report further highlighted that the stock prices of these three companies have fallen by 40 percent in the past one week.

On the other hand, the share prices of Adani Enterprises and Adani Ports were hit by 10 percent upper circuit on Monday. Meanwhile, Adani Wilmar and Adani Port stock hit the lower circuit after a 5 percent drop.

Hindenburg's allegations: In its report, Hindenburg Research alleged that Adani Group had ties to offshore shell companies that were used to launder money, manipulate the stock market, and "maintain the appearance of financial health and solvency” of its businesses.

Adani's response: The conglomerate offered a 413-page rebuttal to the short seller, saying that the allegations were not only an attack against the company but a "calculated attack on India."

This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India.

Adani Group