Rajeev Jain of GQG Partners makes a lot of money as Adani does, but the LIC portfolio is still losing money

 Rajeev Jain of GQG Partners makes a lot of money as Adani does, but the LIC portfolio is still losing money

Rajeev Jain of GQG Partners makes a lot of money as Adani does, but the LIC portfolio is still losing money

The value of LIC's portfolio of Adani Group shares is presently Rs 58,577 crore, a decrease of almost 29% from the value of Rs 82,943 crore in the December 2022 quarter.

Despite a recent surge in the price of Adani Group shares, the Adani Portfolio of Life Insurance Corporation of India is down 30% from its early 2023 estimate.

The value of the Adani Group's LIC kitty in December 2023 was Rs 58,577 crore, which is about 29% less than the estimate in December 2022 of Rs 82,943 crore.

In contrast, GQG Partners, helmed by Rajeev Jain, has almost quadrupled its investment in Adani shares over the last year after entering the market following the revelation of the Hindenburg event and subsequent share price decline earlier this year. As. Undoubtedly, GQG made three tranched investments in the Adani Group: in March, June, and August.

ACC Limited (6.41 percent), Adani Energy Solutions (3.68 percent), Adani Enterprises (4.23 percent), Adani Green Energy (1.36 percent), Adani Port and SEZ (9.07 percent), Adani Total Gas (6.02 percent), and Ambuja Cements (6.3 percent) are the seven Adani Group companies in which LIC has stakes as of the September 2023 quarter.

From the December 2022 quarter, LIC's investment in Adani Ports & SEZ and ACC Ltd climbed by 25% and 314 percent, respectively, to Rs 20,208 crore and Rs 2,613 crore. Its investments in five other firms, on the other hand, have returned negatively: Adani Energy Solutions Ltd. has decreased by 56 percent; Adani Enterprises has decreased by 26 percent; Adani Green Energy has decreased by 16.3 percent; Adani Total Gas has decreased by 68 percent; and Ambuja Cements Ltd. has decreased by 4.3 percent.

In 2023, the Adani Group's shares had no appreciable effect on LIC's investment portfolio. A total of Rs 12.6 lakh crore was invested by LIC in 274 listed firms, representing a 15.5% rise over the portfolio value of Rs 10.90 lakh crore as of the December 2022 quarter.

The value of LIC's portfolio, excluding the seven shares held by the Adani Group, is Rs 12 lakh crore, a 20% rise over the portfolio value of Rs 10.07 lakh crore as of the December 2022 quarter.

financial commitments

Based on data from Prime Database, GQG's Adani Group portfolio increased to Rs 39,331 crore from its original investment of Rs 21,660 crore, meaning that the investment, which was made in three tranches beginning in March 2023, yielded an overall return of 82%.

Its 3,403 crore rupee stake in Adani Enterprises is now valued at 9,024 crore. The original investment made by Adani Green Energy was raised to Rs 8,800 crore from Rs 4,743 crore. GQG's stake in Adani Ports climbed from Rs 4,472 crore to Rs 7,766 crore, while its investment in Adani Power jumped from Rs 4,245 crore to Rs 8,718 crore.

Since November 24, the market capitalization of Adani Group has increased by around Rs 4.5 lakh crore, to Rs 14.8 lakh crore. A number of events have contributed to the rebuilding of the rally, including a prolonged market rally, the Supreme Court's ruling not to look into the group on the basis of accusations made by an American short-seller, the BJP's electoral win in the Hindi heartland, and the US agency's denial of Hindenburg's fraud allegations. Investor faith in the organization

The principal holding of LIC

One of the best-performing equities in LIC's portfolio is ITC Ltd., which has increased by Rs 24,000 crore by December 2022 to reach Rs 86,895 crore. Additionally, LIC now has a larger stake in Tata Consultancy Services Ltd. and L&T, totaling Rs 63,653 crore and Rs 51,714 crore, respectively. December 2022: Rs 36,157 crore and Rs 52,584 crore.

Coal India and Infosys Ltd. saw increases in LIC investments of Rs 23,863 crore and Rs 50,973 crore, respectively, from Rs 15,259 crore and Rs 42,439 crore.