LIC confidence in Adani Enterprises FPO, pays $37 mn as anchor investment
#AdaniGroup #AdaniFPO | LIC is confidence in Adani Enterprises FPO and invests $37 million as an anchor investment in the Adani-Hindenburg transaction.
Despite the publication of a research study by Hindenburg including claims of fraud against the Adani Enterprises group, India's leading life insurance, LIC, remains optimistic over the upcoming sale of shares by the company. The damning revelation, which the company has denounced as inaccurate, was responsible for wiping more than $50 billion off the market value of the conglomerate in only two trading days.
According to a filing, the Life Insurance Corp. of India, which is owned by the Indian government, would invest around Rs 3 billion rupees as an anchor investor in a fresh share offering by Adani Enterprises Ltd. that will raise approximately $2.5 billion. The present percentage that LIC has invested in the firm is 4.23 percent.
The stock price of the Adani group suffered a significant hit after claims of "fraud" in accounting were made against the company in the Hindenburg report. On Friday, equities belonging to the Adani group took a significant hit, falling by as much as twenty percent and shedding more than four hundred and seventeen thousand billion rupees from their total market capitalization. On the BSE, shares of Adani Total Gas fell by 20%, Adani Transmission fell by 19.99%, Adani Green Energy dropped 19.99%, while shares of Adani Enterprises sunk 18.52%. In addition, Adani Ports and Special Economic Zone saw a decrease of 16.03 percent, Adani Wilmar experienced a decrease of 5%, and Adani Power experienced a decrease of 5%.
According to a report by Bloomberg, LIC is an investor in five different Adani firms, and its shares in those companies range from 1% to 9%.
The first instance of life insurance being sold in India dates back more than 100 years.
It is not as well known as it should be in this nation, which has one of the highest population densities in the world, despite the fact that insurance is quite important. In what follows, an effort will be made to familiarise readers with some of the core ideas of life insurance, with a particular focus on LIC.
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The following information, however, should make it abundantly apparent that it is in no way intended to be a comprehensive explanation of the terms and conditions of a LIC insurance, nor of the advantages or privileges that come with it.
What Does It Mean to Have Life Insurance?
A contract for life insurance is an agreement that, in the case of the occurrence of the event insured against, the assured person (or his nominee) would be paid a certain sum of money.
The terms of the contract allow for the insured sum to be paid out on any of the following occasions: "The day of maturity," "Specified dates at periodic intervals," "Unfortunate death, if it happens sooner," and "Specified dates at periodic intervals."
The contract stipulates, among other things, that the policyholder would make regular premium payments to the Corporation. This is one among the terms of the agreement. Life insurance is commonly regarded to be an institution that eradicates 'risk' by replacing certainty for uncertainty and provides prompt assistance to a family in the terrible event that the breadwinner passes away.
In most cases, life insurance may help alleviate some of the difficulties that are brought about by death in a civilised society. In a nutshell, the purpose of life insurance is to provide monetary compensation in the event that any of the following occur during the insured person's lifetime:
1.The risk of passing away unexpectedly and leaving a dependant family to fend for themselves.
2.The state of having no discernible source of support throughout one's life, even into old age.
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According to sources who spoke with ET Now, LIC was not in a state of panic after the carnage that affected Adani group equities. The channel said, citing unnamed sources, that LIC has decided not to sell any of its shares in Adani at this time. Because it invests in firms for the long term most of the time, LIC is not in a state of panic despite the recent drop in Adani's share price.
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