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Will Meet Adani Group Mgmt Soon To Seek Clarification: LIC Chairman

LIC will seek clarification on how Adani Group is managing the whole situation, says the LIC chairman

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Stocks of 7 companies of Adani group fell by nearly 23% on Friday

Following the dire crisis-like situation being experienced by the Adani Group recently, LIC Chairman M R Kumar told reporters at a conference on Thursday that he would be seeking more clarifications from the company’s management soon.

This statement from the LIC Chairman comes even as the country’s largest insurer’s investment into the Adani stocks comes under the opposition’s scanner. 

Kumar said the officials from LIC will meet the top management of Adani Group soon.

"Though our investor team has already sought clarifications from the Adanis, our top management could contact them yet as we have been busy preparing the results. We are soon going to call them to meet us and explain. We want to understand what is happening in the market and in the group," the chairman said on Thursday.

It has been a shocking one month for the Adani Group ever since the allegations of fraud came to light from a report by short-seller Hindenburg Research. The report emphasised that the Gautam Adani-led group manage and manipulate share prices, in addition to running offshore shell companies. 

"We'll be calling them in sometime soon to know how are they managing the whole crisis," Kumar added.

Earlier in February, Adani Group Chairman and Founder Gautam Adani released a video early addressing the topic of shocking withdrawal of its Rs 20,000 crore FPO. The industrialist had said that the Board of directors at Adani Group strongly felt that the FPO would be “morally incorrect” considering the volatility observed in the markets. 

One day prior to the FPO withdrawal, all the Adani stocks had seen a steep decline after Credit Suisse stopped accepting bonds of Adani group as collateral for margin loans to its private banking clients.