The Life Insurance Corporation of India on Thursday said that it will seek an explanation from the Adani Group about the recent fall in its share prices and the conglomerate’s plan to deal with its ongoing crisis, The Indian Express reported.

LIC’s holdings in Adani Group companies have reportedly multiplied 10 times since September 2020. The state-run insurer accounts for over 98% of the entire insurance industry’s investment in the crisis-ridden conglomerate.

The Adani Group has been steeped in a crisis since January 24, when United States-based short-seller Hindenburg Research alleged that the conglomerate has amassed substantial debt by pledging overvalued shares. Since the report was released, Adani Group companies have lost nearly Rs 9 lakh crore in a rout in the stock markets.

The Opposition parties have been alleging that investors were losing money on account of holdings of the state-run Life Insurance Corporation and State Bank of India in the conglomerate led by billionaire Gautam Adani.

On Thursday, Life Insurance Corporation Chairperson MR Kumar told reporters that the insurer will soon contact the Adani Group, PTI reported. “We want to understand what is happening in the market and in the group,” Kumar said. “We’ll be calling them in sometime soon to know how are they managing the whole crisis.”

To a question on the current market value of the state-run insurer’s investment in the Adani Group, Kumar said: “I will not be able to give you the market value as of now, but the book value is the same. We are still in the green.”

The LIC chairperson replied in the negative to a question on whether it has reduced its exposure to the Adani Group. “We buy and hold for the long term,” he said, according to The Indian Express. “We have not reduced exposure [to the Adani Group].”

Also read:

How LIC’s exposure to the embattled Adani Group has implications for middle class savings