LIC takes some money out of Adani stocks

livemint.com:

₹3,816 crore in the December quarter amid volatility in the stocks of the ports-to-renewable energy conglomerate, data from stock exchanges showed. Despite this sale, the value of LIC’s investment in Adani group companies has risen almost 54% from ₹36,470 crore on 30 January 2023 to ₹56,073.64 crore on 17 January 2024, as shares gained during the period.

During the third quarter, LIC also bought shares in Ambuja Cements Ltd worth ₹20.3 lakh. “This reduction in specific stakes by LIC likely aligns with a cautious approach in anticipation of the uncertain market conditions expected during the Union elections," said Atul Parakh, chief executive officer (CEO) of Bigul, an online investment and trading firm.

“Additionally, the subsequent recovery and surge in Adani stock prices post-crisis presented an opportune moment for LIC to realize profits." In Q3, LIC sold a little more than 37 million shares across flagship Adani Enterprises Ltd, Adani Ports and Special Economic Zone Ltd (APSEZ) and Adani Energy Solutions Ltd (AESL). The insurer’s stake dipped from 4.23% in the September quarter to 3.93% in December in Adani Enterprises, from 9.07% to 7.86% in APSEZ, and from 3.68% to 3% in AESL.

“The recent volatility in Adani stocks, coupled with strategic portfolio adjustments, could have prompted LIC to reduce its exposure in the group," said Kranthi Bathini, director of equity strategy at WealthMills Securities, a stock market and investment management firm. In terms of the number of shares offloaded, LIC sold the most shares—26 million—in APSEZ, at a volume weighted average price (VWAP) of ₹875.42, fetching ₹2,289.6 crore.