Adani stocks: MSCI said it continued to monitor Adani Group and associated securities, including related to free float, and would issue further communication if appropriate. 
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Adani stocks: MSCI said it continued to monitor Adani Group and associated securities, including related to free float, and would issue further communication if appropriate. Shares of Adani Energy Solutions Ltd tanked 7 per cent in Thusrday's trade after the MSCI in its latest rejig did not include the Adani group company in the MSCI Global Standard index, citing concerns over its free float. The Adani group stock fell 7.46 per cent to hit a low of Rs 995 on BSE. With this, the stock has fallen 5.74 per cent in 2024 so far.
In a release, MSCI cited publicly available disclosures, where Adani Energy Solutions was issued a show cause notice by the Securities Exchange Board of India (SEBI) for potential wrongful categorisation of shareholding of certain entities.
"Consequently, in light of the uncertainty regarding its free float, MSCI will not implement any increases in the Number of Shares (NOS), Foreign Inclusion Factor (FIF) and Domestic Inclusion Factor (DIF) for Adani Energy Solutions as part of the November 2024 Index Review and until otherwise announced," MSCI said.
MSCI said it continued to monitor Adani Group and associated securities, including related to free float, and would issue further communication if appropriate.
Recently, Adani Energy Solutions reported a Q2 profit growth 172 per cent YoY, translating from higher Ebitda and aided by deferred tax reversal (MAT entitlement of previous years) of Rs 314 crore.
Excluding deferred tax reversal (MAT entitlement), PAT came in at Rs 459 crore, up 61.6 per cent. Revenue for the quarter was up 68.9 per cent YoY at Rs 6,360 crore compared with Rs 3,766 crore YoY. The capex as of 1HFY25 was Rs 4,400 crore, as against Rs 2,622 crore in 1HFY24
The company has secured approval from CERC for transferring the inter-state energy trading license from Adani Enterprises. This license will enable AESL to provide customized power solutions to C&I customers.
"From the conviction list, only Adani Energy did not make the cut. MSCI provided a detailed explanation for not considering the stock, citing low confidence about the stock's free float. Additionally, MSCI has reduced the float in two other entities," Nuvama Institutional Equities noted.
Adani Green Energy may see $173 million outflows, while another Adani group counter Adani Power may see $111 million outflows, the brokerage said.
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