LIC shares: Quant Mutual Fund raises stake in Jan 2023 despite Hindenburg rout

Amid Gautam Adani-Hindenburg issue, most of the Adani group stocks including Adani Ports, Adani Green and Adani Enterprises shares, received heavy beating after the sell off trigger on 25th January 2023. However, this sell off hit shares of State Bank of India (SBI) and Life Insurance Corporation (LIC) of India as well. But, after the clarification issued by SBI and LIC, their stock prices have got stable now.

As told by stock market magnet Warren Buffett, its time to become greedy when the market is panic whereas its time to become panic when market is greedy. so, when LIC shares were under sell off heat after the sell off trigger on its exposure in Adani group companies, some smart investment took place in this insurance behemoth. Quant Mutual Fund is one of those smart investors. The asset management company (AMC) raised its stake in LIC in January 2023 from 0.08 per cent to 0.09 per cent.

Quant Mutual Fund shareholding in LIC

As on 31st December 2022, Quant Mutual Fund was holding 49,48,500 LIC shares, which was 0.08 per cent of total paid up capital of the insurance company. As on 31st January 2023, Quant Mutual Fund’s shareholding in LIC is 58,39,500 shares, which is 0.09 per cent of total paid up capital of the company. This means, Quant Mutual Fund bought 8.91 lakh additional LIC shares, which is around 0.01 per cent of total paid up capital of LIC.

LIC share price post-Hindenburg route

After the outbreak of Gautam Adani-Hindenburg row, LIC share price tumbled from ₹702 apiece levels to ₹603 per share levels, logging around 15 per cent dip in last three week time. However, in this sell off trigger LIC shares made its new 52-week low of ₹582.35 apiece on NSE. But, the stock has rebounded from its lows and shifted into base building mode in the week gone by.

After the questions raised over LIC’s exposure in Adani group companies (both inside and outside parliament), LIC issued statement and cleared the air about its exposure in Adani group companies.

In reply to a Mint query after the Hindenburg Research report on Adani group companies, LIC said, “LIC’s total holding under equity and debt is Rs. 35,917.31 crores as on 31.12.2022 under Adani group of companies. The total purchase value of equity, purchased over the last many years, under all the Adani group companies is Rs. 30,127 Crores and the market value for the same as at close of market hours on January 27th, 2023 was Rs.56,142 Crores. The total amount invested under Adani Group amounts to Rs. 36,474.78 Crores as on date. These investments have however been made over a period.”

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