2 Adani Companies Exits From MSCI Global Standard Index

MSCI India Index has decided to exclude Adani Transmission & Adani Total Gas from the index as a part of its quarterly comprehensive index review.

MSCI Inc announced on Thursday that two Adani group companies, namely Adani Transmission Ltd and Adani Total Gas Ltd, will be removed from the MSCI India index. The order will go into effect on May 31 at the final hour of trading.

The announcement is a further setback for the group, which is struggling to regain investor trust after the Hindenburg report-induced sell-off earlier this year.

The decision was made as part of the global index’s quarterly comprehensive index review. Bloomberg reported that the MSCI has altered the calculation for the number of freely tradable shares in its index for the two companies.

MSCI announced weighting reductions for Adani Transmission and Adani Total Gas in its indexes earlier this month. The reduction was first disclosed in February, following the publication of the Hindenburg report.

Notably, the shares of Adani Group companies traded up between 1% and 5% on Thursday. 

The market reacted positively after the group’s flagship company, Adani Enterprises, announced its intention to raise capital. In early trading, the price of each of the ten Adani Group shares rose.

Adani Transmission Ltd. shares closed 3.15 percent higher at 917 per share on BSE on Thursday. On the BSE, Adani Total Gas Ltd. shares rose 2.30 percent to close at 855.35 per share.

In its report, Hindenburg accused Adani group of flagrant stock manipulation over an extended period of time. 

The group of billionaire Gautam Adani is attempting to raise capital, which is viewed as an important measure of the trust of investors in the group. 

At one stage, the report by US-based short seller Hindenburg wiped out more than $150 billion from the value of the Adani group. Nonetheless, the Adani group rejected all allegations.

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In recent weeks, the selloff has slowed as Adani attempts to regain its market position through a series of investor events, early debt repayments, and a reduction in its spending rate on new projects.