4 Adani Group equities’ free-float designations are removed by index provider MSCI

According to the article, MSCI claimed to have decreased Adani Enterprises’, Adani Total Gas’, Adani Transmission’s, and the Associated Cement Companies’ free floats.

According to a Financial Times story, index provider MSCI has reduced the free-float classifications of four Adani group assets, which will affect the index weightings for the conglomerate. 

The free floats of Adani Enterprises, Adani Total Gas, Adani Transmission, and the Associated Cement Companies were lowered, according to MSCI, the article stated. 

The free floats of the remaining corporations are unchanged.

According to MSCI, Adani Enterprises, Adani Total Gas, Adani Transmission, and ACC now have lower free floats. The free floats of the remaining corporations will not change. According to MSCI, free float refers to the portion of outstanding shares that are offered for sale to investors on open stock markets. 

According to Reuters, as of January 30, the four companies whose free float categorization changed were together weighted 0.4% in the MSCI emerging markets index. The modifications take effect on March 1.

Stocks connected to the Adani Group, meanwhile, have managed to stay in MSCI Inc. indices. After deciding that the characteristics of some investors have enough uncertainty that they should no longer be designated as a free float in accordance with its methodology, the index provider stated on Wednesday that it was reviewing the amount of shares linked to the group that were freely tradable in public markets. 

According to a statement from MSCI, “a variety of market participants have provided comments about the eligibility and free float assessment of various securities affiliated with the Adani Group for the MSCI Global Investable Market Indexes (GIMI).”

Since the US-based short seller Hindenburg Research claimed that a web of Adani-family-controlled offshore shell organizations in tax havens were used to facilitate corruption, money laundering, and taxpayer fraud, Adani Group has seen almost $100 billion wiped off the value of seven companies. The company criticized the allegation as unfounded and vowed to take legal action. The group’s balance sheet is sound, according to chairman Gautam Adani’s statement from last week.