MSCI to lower free float of two Adani companies in its May index review
(Reuters) – The financial index provider said on Friday that MSCI will reduce the free placement of two of India’s Adani Group companies, Adani Total Gas and Adani Transmission, in its review of the May index.
MSCI now sees Adani Total Gas free float at 14% and Adani carrier at 10% from 25%.
Free float is defined as the percentage of shares outstanding that are considered available for purchase on public stock markets by international investors.
In February, MSCI delayed implementing these updates to weights that were due in March and said that “potential reproducibility issues” were behind the decision. It said its methodology called for indexes to be replicated “in an actual portfolio in a cost-effective manner.”
MSCI also said in the same month that it would review the free-float designation of some of the Adani companies’ securities after Hindenburg Research, a US short-selling firm, accused it of improper use of offshore tax havens and stock manipulation.
(Reporting by Janavi Nidumulo in Bengaluru; Editing by Diane Craft)
(Only the title and image for this report may have been reworked by the Business Standard team; the rest of the content is generated automatically from a shared feed.)
First published: May 06, 2023 | 11:05 a.m ist