Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
bhanubhai rathod
Feb 09, 2023 1:06AM ET
good for long term business
0
0
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started
Adani share rout resumes as MSCI questions free float status
© Reuters
By Ambar Warrick
Investing.com -- Shares of firms under the Adani Group fell sharply on Thursday, resuming a recent crash after index operator MSCI said that it no longer considered some securities issued by the group as free float.
The index operator said it will release more details on the matter later in the day, as part of its regular index review for the month. The move comes after a short-seller report and ensuing share rout in Adani saw investors questioning whether the securities of the firm should be included in MSCI indexes.
MSCI describes free float as the percentage of shares outstanding that are available for purchase in public equity markets by international investors.
“MSCI has determined that the characteristics of certain investors have sufficient uncertainty that they should no longer be designated as free float pursuant to our methodology,” the index operator said in an announcement.
Adani Enterprises Ltd (NS:ADEL), the conglomerate’s flagship firm, tumbled 15% to 1,839.65 rupees, breaking two straight days of gains. Adani Ports and Special Economic Zone Ltd (NS:APSE) was the second-worst performer in the group, down 7%, while shares of other firms under the conglomerate sank between 1.7% and 6%.
The move comes as another blow to the Indian conglomerate, which is struggling with a sharp decline in valuations after short-seller Hindenburg Research accused the firm of engaging in fraud and widespread stock market manipulation. Hindenburg also raised concerns over the conglomerate’s elevated debt levels, and said its shares were substantially overvalued.
Responding to the MSCI statement, Hindenburg founder Nathan Anderson said “We view this as validation of our findings” on Twitter.
Adani has been racing to stem the stock rout triggered by the Hindenburg report. Shares of the conglomerate saw a brief respite this week after it said it had repaid over $1 billion worth of its debt prematurely, and was planning to further reduce debt.
But most shares of the firm are still trading between 40% and 60% below levels seen prior to the release of the report.
Related Articles
Comments (1)
Daniel Bonnichsen
Feb 09, 2023 1:06AM ET
Thats your takeaway from this :D??
0
0
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.