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Life Insurance Corporation (LIC) Adani Group Chairman MR Kumar on Thursday said officials of the public sector insurer will hold a meeting with the top management of the Adani group and seek an explanation on the crisis in the group across various businesses. Opposition parties as well as investors are criticizing the investment of LIC (Life Insurance Corporation) in Adani Group. Shares of group companies continue to decline after the report of Hindenburg, an American financial research and investment company. The report accused the Adani group of alleged market manipulation and accounting fraud. However, Adani Group has rejected it outright and warned of legal action.
No date given for meeting
LIC Chairman told reporters at the time of announcement of financial results, however, our investors team has already sought clarification from Adani Group, our top management will get back to them on the matter. We were busy with the financial results right now. We will meet him soon and seek an explanation from him. We want to understand what is happening with the market and the group. Kumar, however, did not give any timeline for the meeting between LIC and the Adani group.
Check for ‘free float’ condition
A new problem came to the fore on Thursday for Adani group companies. MSCI, which provides financial indices, said it is reviewing granting ‘free float’ status to certain securities of group companies. According to MSCI (Morgan Stanley Capital International), ‘free float’ means the number of shares available for purchase by global investors in the market in proportion to the shares available with all participants in the market. The index provider said in a statement that it has received feedback from several market participants regarding the determination of ‘free float’ and eligibility of specific securities belonging to the Adani Group for the MSCI Global Investable Market Index.
Total Gas profit up 13 percent
Adani Total Gas, a joint venture between Adani Group and France’s TotalEnergies, reported a 13 per cent rise in net profit at Rs 148 crore for the quarter ended December. The company supplies CNG to vehicles and piped cooking gas (PNG) to homes. The profit of the company has increased due to increase in sales. In the same quarter of the previous financial year, the company had earned a net profit of Rs 132 crore.
Shares of most of the group companies were broken
Shares of most of the Adani Group companies were seen in losses in early trade on Thursday. The shares of Adani Enterprises, the flagship company of the group, were given 20 percent. About nine companies of the Adani group were trading in the red mark, while one company was trading in the green mark. Shares of Adani Enterprises were down 20 per cent at Rs 1,834.90 per share, hitting its lowest level on the BSE. The company’s market capitalization declined to Rs 2.38 lakh crore in early trade.
Norway Wealth Fund sold all shares
Shares of Adani Group companies have suffered another major setback. World’s largest stock investor Norway Wealth Fund has sold all its equity investments in different companies of Adani Group. Now he has no exposure left in this group. Norway’s sovereign wealth fund, with an investment of US $ 1.35 trillion, had invested a total of about $ 200 million in three companies of the Adani group by the end of 2022.
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