The worth of LIC's Adani group holdings jumps by 51.6% to reach Rs 66,000 crore

Life Insurance Corporation of India (LIC), a state-owned entity, has witnessed a notable increase in returns from its investments in Adani group stocks, as the shares have shown substantial growth in the last year. Its investment in Adani Group companies saw a significant increase of 51.6 % amounting to Rs 22,591 crore, totaling Rs 66,388 crore at the end of Friday's trading session. According to data from the stock exchange, this is in comparison to Rs 43,797 crore from May 31 of the previous year.

It decreased its stakes in Adani Ports from 9.12% to 7.86% and in Ambuja Cements from 6.3% to 5.69%, as per information provided to the stock exchanges. Even with these cuts, the Adani group's investments in LIC have still grown in value.

A couple of days prior, the group from Ahmedabad saw an increase of Rs 84,000 crore in market value for its 10 listed companies, totaling Rs 17.9 trillion.

The domestic institutional investor's holdings in Adani group companies saw a significant increase, climbing from Rs 20,688 crore last May to Rs 47,792 crore this Friday, marking a 131% surge within the year. As per a report by a US investment bank and financial services firm, the Adani group has shown strong resilience after the short-seller report, transforming the setback into a successful comeback.

The report highlighted a 40% increase in the group's earnings before interest, taxes, depreciation, and amortization (EBITDA) during FY24, leading to a lower leverage ratio at the group level compared to previous years.
In FY24, the group concentrated on managing debt and decreasing the founders' share collateral.
In FY24, the overall EBITDA for the group increased by 40% to Rs 66,000 crore, despite securing new investments from equity and strategic investors across various group entities, as mentioned in the report.

Adani Ports also shared its five-year plan, aiming for an annual Ebitda growth of 18% from the fiscal year 2024-2029.