Two Adani Companies Receive A Lowered Free Float From MSCI

In its forthcoming May index review, the index provider MSCI said on Friday that it would reduce the free float percentages of two Adani Group firms, Adani Total Gas and Adani Transmission.

The MSCI Decision

The percentage of outstanding shares that overseas investors perceive to be accessible for purchase on public stock markets is known as free float.

As per The Times Of India, the implementation of the weighting revisions, which were expected in March, was delayed by MSCI in February. The company cited “potential replicability issues” as the reason for the delay. It stated that its process requires indexes to be duplicated in an actual portfolio cost-effectively.

After a U.S. short seller, Hindenburg Research accused the Adani businesses of improperly using offshore tax havens and stock manipulation, MSCI also said that it would evaluate the free float designation of some of the Adani firms’ shares in the same month.

Adani Transmission’s free float is now rated at 10%, down from 25%, while Adani Total Gas’s free float is now rated at 14%, down from 25%.

The Adani Controversy

The Adani-Hindenburg feud began in January, just days before Adani Enterprises’ FPO, when Hindenburg Research issued a study accusing the ports-to-power company of utilizing intricate offshore structures to siphon billions of dollars from its Indian operations. All of these accusations by the activist short seller were refuted by the corporation.

MSCI provides investment decision support tools, including market indexes, analytics, and ESG research for overseas investors. The company’s indexes are used as comparison points for many different investing strategies and products throughout the world.

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