LIC States Investments in Adani Firms Were Made Independently Following Thorough Due Diligence

The Life Insurance Corporation of India (LIC) on Saturday clarified that its investments in Adani group companies were made independently, strictly adhering to board-approved policies and following detailed due diligence. The insurer emphasized that neither the Department of Financial Services under the Union Finance Ministry nor any other external body had any role in these investment decisions. This statement comes in response to a report published in The Washington Post, which alleged that officials had orchestrated LIC’s investment into the Adani group earlier this year, during a period when the conglomerate faced significant debt pressures and scrutiny in the United States. LIC stressed that such allegations were unfounded and seemed intended to undermine its established decision-making processes and tarnish its reputation.

Over the years, LIC, India’s largest insurer and institutional investor, has undertaken investment decisions across numerous companies based on solid fundamentals and meticulous due diligence. Since 2014, the value of its investments in the country’s top 500 companies has grown tenfold, rising from Rs 1.56 lakh crore to Rs 15.6 lakh crore, reflecting strong fund management capabilities. The corporation highlighted that all investment decisions are made independently, in compliance with applicable laws, acts, and regulatory guidelines, and in the best interest of its stakeholders.

LIC specifically pointed to its May 2025 investment of $570 million in Adani Ports & SEZ (APSEZ), a company holding India’s highest ‘AAA’ credit rating. The insurer’s exposure to the Adani group constitutes less than 2% of the conglomerate’s total debt, which is managed by Gautam Adani, India’s second-richest individual. The corporation underlined that its approach is diversified, risk-managed, and strategic, with a portfolio spanning 351 publicly listed companies as of early 2025, covering almost every major business group and sector in India.

In addition to equity holdings, LIC also invests substantially in government bonds and corporate debt, further strengthening its portfolio diversification and risk management. Its largest equity holdings remain in Reliance Industries Ltd., ITC Ltd., Tata Group, HDFC Bank, SBI, and TCS. Specifically, LIC owns 4% of Adani stocks (approximately Rs 60,000 crore), 6.94% of Reliance (Rs 1.33 lakh crore), 15.86% of ITC Ltd. (Rs 82,800 crore), 4.89% of HDFC Bank (Rs 64,725 crore), 9.59% of SBI (Rs 79,361 crore), and 5.02% of TCS (worth Rs 5.7 lakh crore).

Global investor confidence in Adani is also reflected in the participation of major international funds and banks. Investors such as BlackRock and Apollo from the U.S., Mizuho and MUFG from Japan, and DZ Bank from Germany have made significant investments in Adani debt, highlighting the company’s standing in the global financial market. Adani’s total debt of Rs 2.6 lakh crore is supported by Rs 90,000 crore in annual operating profits and Rs 60,000 crore in cash, suggesting that the group could potentially repay its entire debt in under three years if new infrastructure investments were paused.

LIC emphasized that its investment strategy is based on thorough research, independent judgment, and compliance with all relevant regulations, ensuring that all decisions are made with prudence, risk management, and long-term stakeholder interests in mind. As India’s largest institutional investor, with over Rs 41 lakh crore in assets, LIC continues to maintain a balanced and diversified portfolio across sectors, underscoring its role as a cornerstone of the Indian financial ecosystem.