Adani Energy Shares Plunge 9% on MSCI Exclusion

7 Nov 2024 , 12:06 PM

Adani Energy Solutions‘ stock dropped 9% to Rs 978 on the BSE on Thursday after the global index services provider MSCI decided not to include the company in the MSCI Global Standard Index, citing a previous show-cause notice from Sebi following Hindenburg’s accusations.

As part of its regular rejig, which featured five Indian stocks—Voltas, BSE, Kalyan Jewellers, Oberoi Realty, and Alkem Labs—the Street was anticipating that Adani Energy will be added to the global index.

“As per publicly available disclosures, Adani Energy Solutions has been issued a show cause notice by the Securities Exchange Board of India (SEBI) for potential wrongful categorisation of shareholding of certain entities,” according to MSCI.

Therefore, as part of its November review, MSCI stated that it will not execute any increases in the number of shares, as well as the international and domestic inclusion factor for the company, due to the uncertainties surrounding its free float.

According to the statement, MSCI will continue to keep an eye on Adani Group and linked stocks, especially those pertaining to free float, and will communicate further if necessary.

The company told exchanges earlier last month that it had received a show-cause letter from Sebi, claiming that some entities’ shares had been incorrectly classified as public shares.

Additionally, MSCI has decreased the float in Adani Power and Adani Green Energy, two other companies.

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