Life Insurance Corporation (LIC) on Monday said that it will meet with Adani Group's management in the coming days following allegations by U.S. short-seller Hindenburg Research, news agency Reuters reported.
The Hindenburg research firm has accused Adani of high debt levels and tax haven usage. LIC Managing Director Raj Kumar stated that as a large investor, they have the right to seek answers and will engage with Adani to clarify the situation.
"Presently there is a situation that's emerging and we are not sure what is the factual position ... Since we are a large investor we have the right to ask relevant questions and we will definitely engage with them," LIC Managing Director Raj Kumar was quoted as saying by Reuters.
LIC's total investment in Adani shares has been at Rs 28,400 crore. The value of these shares before the crash of last week was Rs 72,200 crore.
The crash happened because of a research report by short seller, Hindenburg Research.
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Still, the value of Adani Group shares held by LIC is at Rs 55,700 crore and LIC's net gain is Rs 27,300 crore.
Adani Group has said in an earlier statement that accounting (or fraud type assertions) "investigation" by Hindenburg are devoid of facts. Of the Adani portfolio's 9 public listed entities, 8 are audited by one of the Big 6.
On leverage or over leverage issue, 100 of our various companies are rated (these account for nearly 100 per cent of our EBITDA), Adani Enterprises said in a stock exchange filing.
(With agency inputs)
