The Life Insurance Corporation (LIC) said on Monday it was reviewing the Adani Group's response to scathing criticism by a U.S. short-seller and would hold talks with the group's management within days.
Shares of companies in the group, led by Asia's richest person Gautam Adani, have lost about $66 billion since Hindenburg Research flagged concerns early last week about the business house's debt levels and the use of tax havens. Adani says it complies with all local laws and has made the necessary regulatory disclosures.
"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 told Reuters.
State-run LIC, the country's largest insurer, says it has invested 364.7 billion rupees ($4.47 billion) in Adani companies, about 1% of its assets under management.
"Of course, we are studying the 413-page reply given by Adani Group," Kumar said. "We will also see if the concerns are addressed - if we believe the concerns are not addressed, we will seek further clarification from them."
LIC owned a 4.23% stake in the flagship Adani Enterprises as of end-December, over 9% in Adani Ports and Special Economic Zone, nearly 6% in Adani Total Gas and 3.65% in Adani Transmission, according to data from the Bombay Stock Exchange.
Kumar's comments came after Adani said in a statement late on Sunday that its "strategic and long-term investors have reposed complete faith and confidence in the group".
