According to MSCI, the free float of security is defined as the proportion of shares outstanding that is considered available for purchase in the public equity markets by international investors.
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New Delhi: MSCI has cracked the whip on the Adani Group. After releasing a statement saying it will scrap the free float status of certain Adani Group companies following feedback from “a range of market participants”, the index provider on Thursday announced that it will cut the weighting of four Adani Group companies — Adani Enterprises, Adani Total Gas, Adani Transmission and ACC.
According to MSCI, the free float of security is defined as the proportion of shares outstanding that is considered available for purchase in the public equity markets by international investors.
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Adani Group companies have plunged into unforeseen levels since the publication of the Hindenburg Research report on 24 January 2023 accusing the Indian conglomerate of improper use of offshore tax havens and stock manipulation. A detailed response from the Adani Group denying any wrongdoing, has, however, created only a little effect in uplifting investors’ faith.
The port-to-coal-to-energy conglomerate lost some $110 billion off its listed firms since the Hindenburg report surfaced.
When MSCI said it’d shred the free float status of Adani Group companies, Hindenburg Research founder Nate Anderson said that the short-seller viewed it as “validation of our findings on offshore stock parking by Adani.”
As per Reuters, the aforementioned four companies had a combined weightage of 0.4 per cent MSCI emerging markets index as of 30 January 2023. The changes come into effect on 1 March 2023.
