scorecardresearchMore trouble for Adani? MSCI seeks feedback on Adani Group over Hindenburg

More trouble for Adani? MSCI seeks feedback on Adani Group over Hindenburg report

Updated: 28 Jan 2023, 10:35 AM IST
TL;DR.

Seven listed companies of the Adani conglomerate - controlled by one of the world's richest men Gautam Adani - have lost a combined $48 billion in market value and U.S. bonds of Adani firms have fallen since Hindenburg on Tuesday flagged concerns about debt levels and the use of tax havens.

People walk past an electronic signage displaying news on the Adani Group at the Bombay Stock Exchange (BSE) building in Mumbai on January 27, 2023. - Trading in the business empire of Asia's richest man Gautam Adani was halted on January 27, 2023 following a 15 percent plunge in its share price, days after a US investment firm claimed it had committed brazen corporate fraud. (Photo by SUJIT JAISWAL / AFP)

People walk past an electronic signage displaying news on the Adani Group at the Bombay Stock Exchange (BSE) building in Mumbai on January 27, 2023. - Trading in the business empire of Asia's richest man Gautam Adani was halted on January 27, 2023 following a 15 percent plunge in its share price, days after a US investment firm claimed it had committed brazen corporate fraud. (Photo by SUJIT JAISWAL / AFP)

(Reuters) - Index provider MSCI said on Saturday it was seeking feedback on Adani Group and associated securities and was aware of a report issued by short-seller Hindenburg Research.

Seven listed companies of the Adani conglomerate - controlled by one of the world's richest men Gautam Adani - have lost a combined $48 billion in market value and U.S. bonds of Adani firms have fallen since Hindenburg on Tuesday flagged concerns about debt levels and the use of tax havens.

"MSCI is closely monitoring publicly available information regarding the situation and the factors that may impact the eligibility of those relevant securities for the MSCI Global Investable Market Indexes," it said in a statement.

Adani Group did not immediately respond to Reuters request for comment. It has dismissed the Hindenburg report as baseless and said it was considering whether to take legal action against the New York-based firm.

India's capital markets regulator was studying the Hindenburg report as it may help its own probe into offshore fund holdings of Adani Group, Reuters reported on Friday.

Billionaire U.S. investor Bill Ackman on Thursday described the Hindenburg report "highly credible and extremely well researched".

First Published: 28 Jan 2023, 10:35 AM IST