Shares of six Adani Group companies closed higher on Thursday after global index provider MSCI said it’ll postpone implementation of free float updates for Adani Total Gas and Adani Transmission to the May index review.
The changes would have led to estimated passive outflows of $255 million from these scrips.
On February 8, MSCI had announced that it would update the foreign inclusion factors of specific securities associated with the Adani Group as part of its February 28 index review.
On Thursday, MSCI said it would apply a special treatment for all of Adani Group’s associated securities in the MSCI Equity Indexes starting post the February review, given the ongoing uncertainty with relation to key input data for index construction for the group securities.
Accordingly, MSCI will not implement any changes in non-market capitalisation weighted indexes and custom indexes, such as the MSCI factor, ESG, thematic and capped indexes for ACC, Adani Enterprises, Adani Green Energy, Adani Ports & SEZ, Adani Power, Adani Total Gas, Adani Transmission and Ambuja Cements. Implementation of such changes will resume at the May review.
The index provider, however, said it would continue to monitor information that may impact the eligibility of the relevant securities for the MSCI Global Investable Market Indexes or estimates of their free float.
On Thursday, flagship Adani Enterprises rose for the third straight session, surging over 5% intraday, before closing at Rs 1,796, up 1%.
Adani Enterprises on Thursday issued a clarification to the exchanges that news reports of the company hiring Grant Thornton for conducting an independent audit, following the Hindenburg fallout, was a ‘market rumour’.
Gautam Adani, chairman of the Adani Group, said earlier this week that the current market volatility was temporary, and that AEL would continue to work with the twin objectives of moderate leverage and look at strategic opportunities to expand and grow.
NDTV, Adani Wilmar and Adani Power each rose by the daily 5% limit on Thursday. Ambuja Cements rose 1%, while Adani Ports & SEZ gained 1.4%. Adani Total Gas fell 5% and Adani Transmission was down 4.9%.
Adani Power said on Wednesday an agreement signed last year to acquire DB Power, which operates a thermal power plant in Chhattisgarh, for an enterprise value of Rs 7,017 crore, has expired. The date to complete the process was extended four times after the initial deal was signed in August 2022.
The Centre on Monday accepted the Supreme Court’s suggestion for a retired judge-led committee to study the recent fall in Adani Group shares, and recommend improvements in statutory and regulatory regimes governing the securities market to protect investors against such future events.