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Adani Group Stocks Hits as MSCI Review Free Float Status

Adani Group shares fell after 2 consecutive days of gains as MSCI implements free float review.

On Thursday, Adani group companies’ shares were under pressure as they dropped up to 10%, just after the index provider MSCI said to review the free float status of the listed group entities.

On the BSE, among the individual stocks, Adani Enterprises hit a 10% lower circuit at Rs 1,942.80. The stock traded in the futures & option (F&O) segment has no circuit limits.

Adani Ports and Special Economic Zone (APSEZ), meanwhile, plunged 9% to Rs 545.95. In contrast, Adani Power’s shares at Rs 172.90, Adani Transmission at Rs 1,248.55, Adani Total Gas at Rs 1,324.45 and Adani Green Energy at Rs 766.60 fixed at a 5% lower circuit.

Besides, Ambuja Cements’ share was down 5.4% at Rs 363.75, ACC’s down 4% at Rs 1,893.70, and New Delhi Television (NDTV) down 4% at Rs 217.95 were down over 3% on the BSE.  

Adani Wilmar was up 1% at Rs 424 per share after climbing 5% to Rs 440.30 in intra-day trade. The S&P BSE Sensex was low by 0.13% at 60,586.

A listed company bounds to ensure that at least 25% of its shareholding is with the public. Shares taken by non-promoters or retail investors, mutual funds, foreign portfolio investors (FPIs), and insurance companies are considered public float or shareholding. Thus, shares by entities or individuals incorporating the company exercise power over the company are stated as promoter shareholding.

On Thursday, index provider MSCI said it reviewed Adani Group securities free float status after market participants put concerns about the company’s eligibility in the Indian conglomerate for its indexes.

“MSCI took feedback from market participants discussing the eligibility and free float organization of specific securities related to Adani Group for the MSCI Global Investable Market Indexes (GIMI).

MSCI said it defined the security’s free float as the proportion of outstanding shares available for purchase in the public equity markets by international investors. 

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