Adani Corporation signage at the Adani Air and Space Defense booth during the India Airshow 2023 at Yelahanka Air Force Station in Bengaluru, India, on Monday, February 13, 2023.
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Index provider MSCI said it would delay implementing weighting changes for some Adani Group companies until the end of the year, according to a report Thursday. Notification.
The change in plans comes later MSCI earlier this month said it would reduce shares of Adani Enterprises, Adani Total Gas, Adani Transmission and ACC, a major Indian cement company that the Adani Group acquired from Holcim last year. The decision was made after MSCI re-evaluated the number of shares that were freely traded.
In its list of Adani companies, MSCI is delaying measures against two companies: Adani Total Gas and Adani Transmission, according to an announcement Thursday morning.
As of the end of January, the four Adani-related companies had a combined weight of 0.4% on the MSCI Emerging Markets Index, Reuters reported.
MSCI said these changes will be reflected in the May index assessment instead of February. The company explained that the decision was made “due to potential copy-pasting issues resulting from the price-limiting mechanism for specific securities related to the Adani Group.”
MSCI said it would apply special treatment to all of the Adani Group-linked securities, citing “ongoing uncertainty regarding key inputs to the index’s construction.” .”
As a result, MSCI will not make any changes – including additions, deletions, and constraints changes – in the non-market capitalization weighted indices and custom indices such as the MSCI Factor, ESG, subject index and cap.
Shares of Adani Group companies were mostly trading higher in Mumbai on Thursday, with the exception of Total Gas Adani decreased by about 2%. Adani Transmission inched 1% higher.
Adani Enterprises up 2.7%, Port of Adani and Special Economic Zone up 2.3%, Adani xanh Green Energy up 2.4% and adani’s strength 5% increase.
