Adani group shares rose in morning deals on Thursday after Mauritius Financial Services Minister Mahen Kumar Seeruttun refuted the allegations labelled by the Hindenburg Research report about the shell companies operating in the island nation.
All 10 Adani group shares surged on opening, whereas Adani Enterprises share price gained maximum buy rising 4%t within a few minutes of market opening. Adani Green Energy, Adani Power, Adani Transmission and NDTV followed with near 2% gains in early morning deals
Adani Ports share price ascended rose over 1%, while Adani Wilmar share price gained around 1.50%. Adani Total Gas shares also jumped more than 1% today. Shares of Ambuja Cement and ACC also rose over 1%.
On Wednesday, Mauritius Financial Services Minister Mahen Kumar Seeruttun said in the parliament that Hindenburg Research's allegations of the presence of 'shell' companies in the Island nation are 'false and baseless' and that Mauritius was in compliance with OECD-mandated tax rules.
The statement by the Mauritius minister came a day before the Hindenburg-Adani issue hearing in the Supreme Court. The apex court, which had appointed an expert committee to look into regulatory issues, is likely to take up SEBI's plea for a six-month extension in timelines to probe allegations against the Adani group.
Adani Enterprises share price jump also comes after the Adani group flagship company announced that its board will hold a meeting on May 13 to approve the proposal of raising of funds.
Adani Enterprises informed about the development citing, “The board will consider raising funds by way of issuance equity shares or other eligible securities through a private placement, a qualified institutions placement or a preferential issue."
Meanwhile, MSCI Indices are going to announce changes for May in its review on Friday, May 12. According to Nuvama Alternative & Quantitative Research, Adani Transmission and Adani Total Gas shares may see over $200 million in combined outflow on a likely cut in weightages.
MSCI on Friday said it would lower the free float percentages of the two Adani Group companies in its upcoming May index review. This is because MSCI now assesses Adani Total Gas' free float at 14%, down from 25%, and Adani Transmission's free float at 10%, down from 25%.
The free float represents the proportion of outstanding shares available for purchase in public equity markets by international investors. If MSCI lowers the free float for these two Adani stocks, Nuvama estimates $122 million in outflow for Adani Transmission and $84 million in outflow for Adani Total Gas.
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