According to CNBC-TV18 analysis, Life Insurance Corporation of India’s investment in Adani Group, India’s largest insurance company, has turned negative.

Based on the December shareholding model provided by the exchange, LIC’s investment in the Adani group of companies was worth Rs 33,632 crore as of the close on February 22.

On January 27, LIC disclosed that its investment in Adani Group was worth Rs 56,142 crore.

If calculated based on the shareholding data in December, the exact value reaches Rs 62,550 crore, a difference of Rs 6,408 crore, or a little over 10%.

This raises the important question of whether LIC sold 6,400 crore worth of Adani Group shares or just over 10% of its holding between January 1 and January 24.

Considering the December shareholding model, LIC’s investment in Adani group companies was worth Rs 33,632 crore as of the close on February 22.

Extending LIC’s sale of about 10% stake in the Adani group of companies and adjusting it to the investment value as of February 22, the revised market capitalisation would be Rs 30,221 crore.

When comparing the February 22 closing price with LIC’s total purchase cost of Rs 30,127 crore in the Adani group of companies, the insurer is still sitting on a mark-to-market gain of Rs 94 crore.

With today’s drop, the value of LIC’s investments fell by another Rs 500 crore, resulting in a loss on LIC’s investments.

The market capitalisation of the Gautam Adani-led group has slumped by more than Rs 12 lakh crore, or more than 60% from its peak, since US-based Hindenburg Research released its report alleging fraud by Adani Group on January 24.

The drop in share prices has raised concerns about the exposure of LIC and other state-owned entities to the group.

In an interaction with CNBC-TV18, Siddhartha Mohanty, managing director and CEO of LIC, said Adani Group’s investment aligns with their prudent norms.

Finance Minister Nirmala Sitharaman expressed the same thought in an interview with Network18 that LIC and SBI’s investments in Adani Group are within the allowable range.