Adani Group Latest News: Adani’s shares may fall further! msci seeks feedback on adani group on hindenburg report
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The index provider said, ‘We are closely monitoring factors and current conditions that may affect the eligibility of the relevant securities for the MSCI Global Investable Market Index.’ It said it welcomes timely feedback from market participants on the issue. Currently eight companies belonging to the Adani Group are part of the MSCI Standard Index.
Market experts believe that in case of any adverse feedback, the weightage of Adani group companies in the MSCI index may be reduced or it may even be excluded from the index. If such a step is taken, then the selling of shares of Adani group companies may intensify further. Since the arrival of Hindenburg Research’s report, there has been a huge decline of Rs 4.17 lakh crore in the market capitalization of Adani Group in just two trading days.
However, experts feel that MSCI will not take any action until the feedback from market participants about Adani Group is completed and its review process is completed.
America’s ‘activist’ investment research firm Hindenburg Research has said in a report that Adani group companies have adopted wrong methods to increase share prices. Apart from this, the group companies have also been accused of fraud in accounting.
The report comes just ahead of the follow-on public offering (FPO) of Adani Enterprises, the representative company of the Adani Group. The company aims to raise Rs 20,000 crore through the FPO, but the company’s shares went down heavily on Friday when the issue opened.
The Adani Group has dismissed the report saying that it has been issued with malicious intent to harm its FPO. Along with this, he has also said to consider trying the legal option.
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