India's largest insurer LIC says it may review stake in Adani after management meeting

India's largest insurer says it "might" reappraisal its involvement successful the embattled Adani Group aft gathering with the management.

Life Insurance Corporation Chairman M.R. Kumar told CNBC successful an exclusive interrogation that the authorities insurer plans to person a treatment with the Adani absorption soon to get a amended representation of the situation engulfing the conglomerate.

"As an investor, it's not often that we person this benignant of a situation. But past we person reached retired to the absorption of Adani," Kumar, told CNBC's Tanvir Gill successful an interrogation successful Mumbai past week, adding the gathering could hap successful the coming days.

"We suggest to talk to them astir this ... conscionable to effort and recognize what's truly happening wrong the organization, wrong the Adani group."

The president said the insurer volition marque a telephone whether to reappraisal its involvement successful the Adani Group aft the meeting. 

For now, LIC has nary plans to trim its vulnerability successful the ports-to-energy conglomerate.

"As of now, no," the president told CNBC.

Asked whether that could alteration aft the gathering with the Group, the president said it "might."

On Jan. 30, astir a week aft the Hindenburg study came out, LIC said successful a statement it had invested 364.7 cardinal rupees ($4.47 billion) successful Adani companies. That brings the insurer's full vulnerability successful the Group astir 1% of its assets nether management.

The authorities insurer had a 4.23% involvement successful the conglomerate's flagship concern Adani Enterprises arsenic of extremity 2022, according to FactSet data. LIC besides owns 9.14% of Adani Ports arsenic of Nov. 11 past year, FactSet showed.

"These standing actions travel the important and accelerated diminution successful the marketplace equity values of the Adani Group companies pursuing the caller merchandise of a study from a short-seller highlighting governance concerns successful the Group," Moody's said successful a statement.

In a further blow, global scale supplier MSCI past week said it volition chopped the weightings of immoderate Adani Group businesses, including flagship steadfast Adani Enterprises.

Nathan Anderson, laminitis of Hindenburg, pursuing the MSCI determination connected Twitter said: "We presumption this arsenic validation of our findings connected offshore banal parking by Adani." 

Still, the LIC president said the nationalist insurer isn't excessively acrophobic astir the conglomerate's precocious indebtedness levels oregon the caller volatility successful Adani's stock price. He stressed LIC makes its concern decisions based connected marketplace fundamentals.

"I tin guarantee you that each concern decisions taken by LIC, are fundamentally connected fundamentals, connected institution valuations — whether it is indebtedness oregon equity," Kumar said.

The Adani fallout has raised concerns astir the group's vulnerability to India's starring banks and insurers.

India's absorption parties person targeted some the LIC and State Bank of India, the country's largest lender, for their investments successful the conglomerate.

India's main absorption Congress enactment accused the authorities arsenic good arsenic LIC and SBI for squandering nationalist wealth and demanded a probe into the allegations made successful the Hindenburg report.

The absorption enactment besides organized street protests extracurricular respective LIC and SBI offices crossed the state past week, implicit their vulnerability to the Adani Group.

Last week, the State Bank of India told CNBC,  the loans they extended to the Adani radical are good covered and determination should beryllium nary contiguous risks. The slope added the Indian nationalist doesn't request to beryllium acrophobic astir their deposits successful the bank.

LIC's president echoed a akin sentiment saying the state-owned insurer's fundamentals stay robust.

"I deliberation we person precise beardown fundamentals successful place. The maturation drivers are intact … we are increasing precise good this year," said Kumar. "So I judge that radical request not person immoderate worries astir wherever they've invested their money."