LIC Defends Adani Investments, Cites Independent Due Diligence

LIC Clarifies Investment Strategy Amid Allegations

In a recent statement, the Life Insurance Corporation of India (LIC) asserted that its investment endeavors within the Adani group companies are conducted independently, adhering strictly to board-sanctioned policies and comprehensive due diligence.

Also read: Savings of LIC’s 30 crore policyholders ‘systematically misused’ to benefit Adani: Congress

Clarifying its investment strategy, LIC stated that neither the Department of Financial Services under the Union Finance Ministry nor any other entity plays a part in its investment choices. "The investment decisions are taken by LIC independently as per Board-approved policies after detailed due diligence," the insurer emphasized in a post on X.

The announcement came in response to a report from The Washington Post which suggested that officials had influenced LIC's investment in the Adani group amid the conglomerate's financial scrutiny in the US earlier this year.

LIC's commitment to methodical investment practices has seen its stake in leading Indian companies surge tenfold since 2014, from Rs 1.56 lakh crore to a staggering Rs 15.6 lakh crore, showcasing robust fund management.

Highlighting its adherence to regulatory standards, LIC noted, “LIC has ensured the highest standards of due diligence and all its investment decisions have been undertaken in compliance with extant policies, provisions in the Acts, and regulatory guidelines, in the best interest of all its stakeholders.”

The Washington Post's report focused on LIC's $570 million investment in Adani Ports & SEZ (APSEZ) in May 2025, a company holding India's top 'AAA' credit rating. LIC defended its decision-making process, suggesting the report aimed to damage its reputation and undermine India's financial infrastructure.

As India's largest institutional investor with assets exceeding Rs 41 lakh crore, LIC's investment portfolio spans 351 publicly listed companies across diverse sectors. The corporation holds substantial positions in government bonds and corporate debt, ensuring a well-diversified portfolio to mitigate risk.

Regarding its exposure to the Adani group, LIC clarified that it constitutes less than 2% of the conglomerate's total debt. Notably, global financial giants like BlackRock, Apollo, and prominent Japanese and German banks have also invested in Adani's debt recently, reflecting international confidence in the group.

According to sources, Adani's overall debt of Rs 2.6 lakh crore is supported by an annual operating profit of Rs 90,000 crore and Rs 60,000 crore in cash, suggesting the group could eliminate its debt in under three years, should it halt new infrastructure projects.

In its equity investments, LIC holds a 4% stake in Adani stocks (Rs 60,000 crore) compared to larger holdings in other major companies, such as Reliance Industries Ltd., ITC, and the Tata Group. LIC owns 6.94% of Reliance (Rs 1.33 lakh crore), 15.86% in ITC Ltd (Rs 82,800 crore), 4.89% in HDFC Bank (Rs 64,725 crore), and holds a 9.59% stake in SBI, worth Rs 79,361 crore. Furthermore, LIC owns 5.02% of TCS, valuing Rs 5.7 lakh crore.