LIC Plans To Cap Investment Exposure Following Adani Share Rout: Report

In an effort to reduce risk concentration in the wake of criticism of its investments in Adani group companies, the state-run Life Insurance Corporation of India (LIC) is planning to impose caps on its debt and equity exposure to companies, according to sources.

LIC was criticized for having over $4 billion in exposure to companies from the Adani group after the group's valuation dropped by over $100 billion following damning allegations made by Hindenburg Research, a company based in the United States.

Once the LIC board has approved the caps, they will further reduce the insurer's exposure.
It was be recalled that a January 24th, report by Hindenburg saw severe price destruction in Adani stocks. According to Hindenburg, Adani Group predictably tried to lead the focus away from substantive issues and instead stoked a nationalist narrative, claiming its report amounted to a "calculated attack on India."

"In short, the Adani Group has attempted to conflate its meteoric rise and the wealth of its Chairman, Gautam Adani, with the success of India itself," Hindenburg had said.

The Adani Group has denied most of the allegations and its stock prices have seen some recovery.