NEW DELHi - India's state-backed Life Insurance Corp (LIC) has no current plans to bid in the ongoing $2.5 billion secondary share sale of Adani Enterprises, a source with direct knowledge of the matter told Reuters on Monday.
Adani's group companies are under pressure after U.S. short-seller Hindenburg Research's criticism of its business practices last week, that has since led to a $65 billion loss in the Indian group's stock values. Adani has called the report baseless.
LIC, the country's largest insurer, took 5% of Adani share offering's anchor portion of $736 million, but has no plans to bid for more in the ongoing book building process that closes Tuesday, the source said.
Hit by weakened sentiment after the Hindenburg report, Adani Enterprises shares closed at 2,892.85 rupees ($35.51) on Monday, well below the offer price range of 3,112-3,276 rupees per share. The issue has so far been subscribed by 3%, raising doubts about its success.
"LIC will not go (bid) for institutional quota at present," said the source, who did not want to be named as the decision making process is private.
LIC is taking a cautious approach and the board had only approved the anchor bid, the source said.
LIC and India's finance ministry did not immediately respond to Reuters' queries.
LIC already holds a 4.23% stake in the flagship Adani firm, while its other exposures include a 9.14% stake in Adani Ports and 5.96% in Adani Total Gas.
($1 = 81.4600 Indian rupees)
(Reporting by Nikunj Ohri; Editing by Aditya Kalra and Louise Heavens)