scorecardresearchMSCI to announce changes to free float status of some Adani securities:

MSCI to announce changes to free float status of some Adani securities: Report

Updated: 09 Feb 2023, 11:09 AM IST
TL;DR.

MSCI said that changes for Adani securities associated with its MSCI Global Investable Market Indexes are due to be announced later on Thursday as part of its regular review for February.

Adani Enterprises' stock increased 112% from its 52-week low of  <span class='webrupee'>₹</span>1,017 per share marked on February 3 to close at  <span class='webrupee'>₹</span>2,164.25 on Wednesday.

Adani Enterprises' stock increased 112% from its 52-week low of 1,017 per share marked on February 3 to close at 2,164.25 on Wednesday.

Index provider MSCI (Morgan Stanley Capital International) on Thursday said it had determined that some Adani securities should no longer be designated as free float after market participants raised concerns about the eligibility of the Indian conglomerate's companies for some of its indexes, Reuters reported.

It defines a security's "free float" as the proportion of outstanding shares that are considered available for purchase in public equity markets by international investors, said the report.

MSCI added that changes for Adani securities associated with its MSCI Global Investable Market Indexes are due to be announced later on Thursday as part of its regular review for February, as per Reuters.

Adani Group, however, did not immediately respond to a Reuters request for a comment.

The Gautam Adani-led group has been engulfed in crisis since U.S. short-seller Hindenburg Research published a report on Jan. 24 that accused the conglomerate of stock manipulation, accounting fraud and improper use of offshore tax havens. It also raised concerns regarding high levels of debt and “excessive valuations”.

“We view this as validation of our findings,” said Hindenburg founder Nathan Anderson in response to the MSCI statement.

Reacting to the report the next day, Adani Group had released a media statement where the company said that it was shocked that Hindenburg Research had published a report “without making any attempt to contact the company or verify factual matrix”.

Following Hindenburg Research's allegation on the Indian giant, the shares of Adani Group companies fell sharply, losing thousands of crores in market cap. However, in the last few trading sessions, they have recovered from some losses.

On Thursday, February 2, Adani Enterprises called off its follow on public offering (FPO). The company in an exchange filing said that due to unusual circumstances and the current market volatility, it wants to safeguard the interest of its investors base by returning the FPO funds and cancelling the complete transaction.

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Adani stocks' performance
First Published: 09 Feb 2023, 11:09 AM IST