Two Gautam Adani-led Adani Group firms will reportedly be dropped out of MSCI India index soon. As per official updates, Adani Transmission Ltd and Adani Total Gas Ltd will be dropped out of MSCI India Index.
The order would come into effect at the close of trading on May 31, 2023, as per MSCI Inc. At a time when the Adani Group is trying to regain its position in the market, the move to remove two Adani Group companies from the index, comes as a blow.
To recap, both the Adani Group companies are reportedly being removed due to the allegations made by the Hindenburg Research report in which the latter alleged fraud and stock manipulation by the Gautam Adani-led entity. Even before this, some Adani Group companies were under the scanner of various indexes.
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MSCI India Index decided to drop Adani Total Gas and Adani Transmission as a part of its quarterly comprehensive index review.
As per a Bloomberg report, the MSCI has also reportedly changed its index’s calculation on the number of shares that are considered freely tradable in the public market for these two companies. The MSCI had also informed, earlier this month, that it would implement weighting cuts for Adani Total Gas and Adani Transmission.
Recently, the Adani Group’s flagship entity, Adani Enterprises also announced its fundraising plans, months after it called off its Rs 20,000c crore-worth FPO. In a meeting to be held on Maay 13, the stakeholders are expected to consider and approve the same.
