Adani Stock Rout Resumes As MSCI Says It’s Reviewing Free Float


Adani Group, one of India’s largest conglomerates, has seen a recent stock rout after the MSCI announced it is reviewing the company’s free float, or the number of shares available for public trading.

Any decision by the index provider to cut its assessment of the number of Adani shares considered freely tradable or remove the stocks from its indexes will likely trigger more selling. (Photo: Bloomberg)Adani Group stocks fell, ending

The review has raised concerns among investors about the potential reduction in the company’s weighting in MSCI indices, which could lead to outflows from index-linked funds. This has resulted in a sharp decline in Adani’s stock prices, with shares of Adani Total Gas, Adani Green Energy and Adani Ports and Special Economic Zone declining by as much as 7%.

Adani Group has faced criticism in the past for its corporate governance practices, including its close relationship with the Indian government. The MSCI review is likely to increase scrutiny on the company’s governance standards and its impact on minority shareholders. MSCI’s review of Adani’s free float is part of its regular index maintenance process, and the company has stated that it will fully cooperate with the review.

The outcome of the review is expected to be announced in the coming weeks. In response to the review, Adani Group has issued a statement emphasizing its commitment to high standards of corporate governance and transparency.

The company has also emphasized its efforts to improve its sustainability practices, including its investment in renewable energy and its focus on reducing its carbon footprint.

Despite the recent stock rout, Adani remains one of India’s largest and most diversified conglomerates, with a significant presence in industries such as ports, agribusiness, real estate, and defense.

The outcome of the MSCI review will likely have a significant impact on the company’s stock prices and investor sentiment in the near term. Investors are advised to closely monitor the situation and the outcome of the MSCI review.

It is also important to consider the company’s financial performance, governance practices and future growth prospects before making any investment decisions.


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