Feb 23, 2024
MSCI to announce changes in free float status of Adani Group stocks today; what does it mean?
Morgan Stanley Capital International (MSCI) on Thursday said that some Adani group stocks should no longer be designated as free float after investors raised concerns over the eligibility of the Adani companies for some of its indexes. The changes for the Adani stocks associated with its MSCI Global Investable Market Indexes (GIMI) will be announced later today, as part of its regular review for February, according to the report. “MSCI has determined that the characteristics of certain investors have sufficient uncertainty that they should no longer be designated as free float pursuant to our methodology,” it said in a statement.
MSCI defines the free float of security as the proportion of shares outstanding that are considered available for purchase in public equity markets by international investors. Hindenburg founder Nathan Anderson, in response to the MSCI statement, tweeted, “We view this as validation of our findings”. Adani Enterprises (1.30% weightage), Adani Ports (0.51%), Adani Total Gas (1.35%), Adani Green (0.79%), Adani Transmission (0.94%, Adani Power (0.27%), ACC (0.22%) and Ambuja Cements (0.37%) are the stocks that are a part of the MSCI India index while Adani Wilmar and NDTV are not part of it.
In the aftermath of the report, Adani Group stocks fell drastically and wiped out over $100 billion off Adani’s seven main listed stocks in just a few days. Adani Enterprises also called off its fully subscribed follow-on public offer (FPO) with the aim to protect investors’ interests. Though Adani Group stocks have started to recover now with Adani Enterprises shares touching the upper circuit in the previous session.
More Details