LIC has no plans currently to bid for more in Adani share sale: ReportPersonal FinanceLIC has no plans currently to bid for more in Adani share sale: Report

LIC has no plans currently to bid for more in Adani share sale: Report


NEW DELHI : India’s state-backed Life Insurance Corp (LIC) has no current plans to bid in the ongoing $2.5 billion secondary share sale of Adani Enterprises, a source with direct knowledge of the matter told Reuters on Monday.

Adani’s group companies are under pressure after US short-seller Hindenburg Research’s criticism of its business practices last week, that has since led to a $65 billion loss in the Indian group’s stock values. Adani has called the report baseless.

LIC, the country’s largest insurer, took 5% of Adani share offering’s anchor portion of $736 million, but has no plans to bid for more in the ongoing book building process that closes Tuesday, the source said.

Hit by weakened sentiment after the Hindenburg report, Adani Enterprises shares closed at 2,892.85 ($35.51) on Monday, well below the offer price range of 3,112-3,276 per share. The issue has so far been subscribed by 3%, raising doubts about its success.

“LIC will not go (bid) for institutional quota at present,” said the source, who did not want to be named as the decision making process is private.

LIC is taking a cautious approach and the board had only approved the anchor bid, the source said.

LIC and India’s finance ministry did not immediately respond to Reuters’ queries.

LIC already holds a 4.23% stake in the flagship Adani firm, while its other exposures include a 9.14% stake in Adani Ports and 5.96% in Adani Total Gas.

 


Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.

Take the test

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Finplay.
Download Finplay News App to get Daily Market Updates.

More
Less

Disclaimer: Along with publishing our own news, we get news from various sources namely from news wires ANI, PTI, other reputed finance portals and individual journalists. We are not legally liable for any inaccuracies in the news and expect the reader to do their own due diligence.

http://ganesh@finplay.in

Finance enthusiast, Mutual fund expert.




Leave a Reply

Your email address will not be published. Required fields are marked *

Finplay

AMFI-registered Mutual Fund Distributor ARN-192179

Company

© 2024 Finplay Technologies Private Limited. All Rights Reserved.