MSCI cuts free-float designations of Adani Enterprises, Adani Total Gas, Adani Transmission and ACC
MSCI cuts free-float designations of Adani Enterprises, Adani Total Gas, Adani Transmission and ACC
Adani Group News: Index provider MSCI said it has cut the free-float designations of four securities of India's Adani Group, a move which analysts have warned could impact their index weightings.
MSCI said in a statement it has reduced the free floats of Adani Enterprises (ADEL.NS), Adani Total Gas (ADAG.NS), Adani Transmission (ADAI.NS) and ACC (ACC.NS).
The remaining companies' free floats will remain the same.
Adani did not immediately respond to a request for comment from Reuters.
The four companies for which the free float designation change was announced had a combined 0.4% weighting in the MSCI emerging markets index as of Jan. 30.
The changes come into effect on March 1.
Billionaire Gautam Adani has seen some $110 billion wiped off the value of seven firms in the group he founded after U.S. short seller Hindenburg Research accused it of improper use of offshore tax havens and stock manipulation. Adani has denied any wrongdoing.
Analysts had said a change in free float status could affect the weightings of MSCI index constituents, possibly triggering a shift by funds as many investments are aligned to such indexes.
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