Global Index Provider MSCI Lifts Freeze On Adani Stocks, Ignoring Latest Hindenburg Allegations

Despite the ongoing controversy surrounding the Adani Group following the latest Hindenburg report, MSCI, a global index services provider, announced on Tuesday (13 August) that it will lift the freeze on the coverage of Adani stocks.

"MSCI clarifies that starting from the August 2024 Index Review, MSCI will implement the index review changes, including changes in the Number of Shares (NOS), Foreign Inclusion Factor (FIF) and Domestic Inclusion Factor (DIF) of Adani Group and associated securities that have been previously postponed," MSCI said in a statement, Economic Times reported.

The regular implementation of corporate events for Adani stocks is set to take effect from 2 September 2024.

"MSCI continues to monitor Adani Group and associated securities, including related to free float, and will issue further communication if appropriate," it said.

Following the announcement, Adani Group shares saw an uptick of up to 5 per cent, rebounding from the previous day's losses.

This recovery came in the wake of allegations by short-seller Hindenburg that SEBI's investigation into the Adani issue was compromised due to a conflict of interest involving regulatory head Madhabi Puri Buch.

However, Buch has clarified that all necessary disclosures were made and that the offshore fund in which her family had investments never engaged in trading Adani stocks.

MSCI defines the free float of a security as the proportion of shares outstanding that is considered available for purchase in public equity markets by international investors.

"MSCI has determined that the characteristics of certain investors have sufficient uncertainty that they should no longer be designated as free float pursuant to our methodology. This determination has triggered a free float review of the Adani Group securities," it had said earlier.

Adani stocks faced a loss of up to $150 billion last year following the Hindenburg report, which accused the Ahmedabad-based conglomerate of stock manipulation, money siphoning, and various corporate governance issues.

The Adani Group currently owns 11 listed companies on Dalal Street.

In June this year, the combined market capitalization of Adani Group's listed entities surpassed the levels before the Hindenburg report.

Also Read: Google Joins India's Smartphone Manufacturing Surge With Locally Made Pixel 8