Life Insurance Corporation (LIC) is infusing more money into Adani Group’s flagship firm as it remains net positive despite stock prices falling following short seller fraud allegations, filings and stock market data showed. .
India’s largest life insurer invested nearly ₹300 crore in fresh share sale of ₹20,000 crore by Adani Enterprises Ltd (AEL) as anchor investor to buy 9,15,748 and shares, according to AEL’s stock exchange filing.
The shares chosen by LIC constituted a total of 5% of the shares reserved for anchor investors.
Overall, 33 institutional investors invested ₹5,985 crore in AEL as anchor investors. LIC already held 4.23% stake in AEL, like its holdings in the other six listed companies of the Adani group.
According to stock exchange information, LIC has invested a total of Rs 28,400 crore in Adani shares over the years. The stock price was up ₹72,200 crore in the last two trading sessions before the US short seller report.
The value of LIC’s shares in Adani group companies fell to Rs 55,700 crore, but it still netted Rs 27,300 crore on its original investment.
LIC holds 9% in Adani Ports & Special Economic Zone, 3.7% in Adani Transmission, 1.3% in Adani Green Energy and 6% in Adani Total Gas Limited.
Other investors forming part of the anchor investors in AEL’s follow-on public offer include Abu Dhabi Investment Authority and Al Mehwar Commercial Investment LLC.
In a stock exchange filing, AEL said the FPO committee of its board of directors has finalized the allotment of 1.82 crore shares to anchor investors at ₹3,276 per share, of which ₹1,638 per share will be paid up to date and the rest will be paid upfront. Will be done in subsequent calls.