According to reports, two Adani Group companies run by Gautam Adani would shortly be removed from the MSCI India index. Adani Transmission Ltd. and Adani Total Gas Ltd. will be removed from the MSCI India Index, according to official updates.
According to MSCI Inc., the order would go into effect at the end of trade on May 31, 2023. The decision to remove two Adani Group firms from the index comes as a setback at a time when the Adani Group is attempting to restore its place in the market.
Recap: According to reports, both Adani Group firms have been terminated as a result of the accusations made in the Hindenburg Research study, which claimed that the Gautam Adani-led organization had engaged in stock manipulation and fraud. Some of the Adani Group enterprises have already come under the scrutiny of numerous indices before this.
Adani Total Gas and Adani Transmission were removed from the MSCI India Index as a result of its quarterly comprehensive index review.
According to a Bloomberg story, the MSCI has allegedly modified how many shares of these two businesses are deemed freely available on the open market for calculating its index. Additionally, the MSCI has already disclosed that it will reduce the weighting for Adani Total Gas and Adani Transmission.
Adani Enterprises, the parent company of the Adani Group, has revealed its ambitions to raise money, months after canceling an FPO for Rs 20,000 crore. The stakeholders are anticipated to review and endorse the same at a meeting on May 13.