Life Insurance Corporation of India (LIC) recently confirmed that its investments in Adani Group entities have always been conducted with complete autonomy, aligning with its established board-approved policies and after thorough due diligence. The insurer emphasized that no external bodies, including the Department of Financial Services within the Union Finance Ministry, played any role in these crucial investment decisions.
As India’s leading insurer, LIC consistently bases its investment choices across various companies on fundamental analysis and comprehensive evaluation. Over the past decade, its investment portfolio in India’s top 500 corporations has seen remarkable growth, increasing tenfold from ₹1.56 lakh crore in 2014 to ₹15.6 lakh crore, a testament to its robust fund management strategies.
A recent social media post from LIC India reiterated their position, stating, ‘LIC denies false reports by The Washington Post, reaffirming all investments are made with integrity and due diligence.’
LIC further clarified that all investment decisions are made internally, guided by board-approved policies and rigorous due diligence. The corporation adheres to the highest standards of diligence, ensuring all investment choices comply with existing policies, relevant acts, and regulatory guidelines, ultimately serving the best interests of all its stakeholders.
This statement directly addresses a report published in The Washington Post, which suggested that officials orchestrated a plan to guide LIC’s investments into the Adani Group at a time when the conglomerate faced significant debt challenges and scrutiny in the U.S. The report specifically referenced LIC’s May 2025 investment of USD 570 million in Adani Ports & SEZ (APSEZ), a company that boasts India’s highest ‘AAA’ credit rating.
LIC firmly rejected the Washington Post’s claims, asserting that such statements intend to undermine its well-established decision-making processes and tarnish the reputation of both LIC and India’s strong financial sector. LIC is not merely a small, specialized fund; it stands as India’s largest institutional investor, managing assets exceeding ₹41 lakh crore (over $500 billion). Its extensive portfolio includes investments in 351 publicly listed stocks as of early 2025, covering virtually every major business group and sector, along with substantial holdings in government bonds and corporate debt, all contributing to a highly diversified and risk-spread portfolio.
Notably, LIC’s exposure to the Adani Group accounts for less than 2% of the conglomerate’s total debt. Moreover, global financial giants such as BlackRock, Apollo, Japan’s Mizuho and MUFG, and Germany’s DZ Bank have also recently invested in Adani debt, indicating widespread confidence in the group.
Sources close to the matter highlight that Adani’s total debt of ₹2.6 lakh crore is well-supported by ₹90,000 crore in annual operating profit and ₹60,000 crore in cash reserves. This financial strength suggests that if new infrastructure investments were temporarily paused, Adani could potentially clear its entire debt in under three years.
On the equity front, the Adani Group is not LIC’s largest holding. The insurer’s most substantial equity investments are in companies like Reliance Industries Ltd., ITC, and the Tata Group. To put it in perspective, LIC holds 4% (₹60,000 crore) of Adani stocks, in contrast to 6.94% (₹1.33 lakh crore) in Reliance, 15.86% (₹82,800 crore) in ITC Ltd, 4.89% (₹64,725 crore) in HDFC Bank, and 9.59% (₹79,361 crore) in SBI. Furthermore, LIC’s 5.02% stake in TCS is valued at a significant ₹5.7 lakh crore.