LIC, the state-owned insurance behemoth, has seen a 59 per cent rise in the value of its investments in Adani group companies in the 2023-24 fiscal year after the conglomerate made a smart recovery since being hammered by a damning short seller report.

The value of LIC’s investment in seven Adani group companies has soared from Rs 38,471 crore as on March 31, 2023 to Rs 61,210 crore on March 31, 2024, registering an increase of Rs 22,378 crore, according to stock exchange data.

Last year, the insurance giant faced intense scrutiny over its decision to invest in the Adani group amidst a political slugfest after allegations of stock manipulation fuelled by Hindenburg report.

Adani group denied any wrong doing.

Adani Group’s stocks, which at lowest point took a beating of about $150 billion, have staged a remarkable comeback, fuelled by robust profit growth across its diverse businesses.

Facing political pressure, LIC strategically reduced its exposure to two of the group’s flagship companies — Adani Ports & SEZ and Adani Enterprises — only to witness their shares surge by an impressive 83 per cent and 68.4 per cent, respectively.

Despite trimming its ownership, LIC investments saw a 59 per cent surge in value in FY24, according to stock exchange data.

While the domestic investor faced pressure, overseas investors wasted no time seizing the opportunity, with heavyweights such as the Qatar Investment Authority, Abu Dhabi-based IHC, French giant TotalEnergies and US based GQG Investment, collectively pouring close to Rs 45,000 crore into Adani stocks.