Morgan Stanley Capital International (MSCI), a New York-based index provider, has said that it is aware of Hindenburg’s allegations against Adani Group and is seeking feedback on the same from the conglomerate, Reuters reported.
"MSCI is closely monitoring publicly available information regarding the situation and the factors that may impact the eligibility of those relevant securities for the MSCI Global Investable Market Indexes," it said in a statement.
After US research firm and short-seller Hindenburg released a report on Wednesday accusing Adani Group of fraud and stock manipulation, all the companies under the group have faced a rough time on the Indian bourses. Adani Group, helmed by Asia’s richest man Gautam Adani, has reportedly lost close to Rs 4 lakh crore in the trading sessions since Hindenburg published its findings.
Several of the Adani stocks are featured on MSCI’s India Index and as such, it is possible that there might a shuffle in the index list if the allegations against Adani Group prove true.
Despite Adani Group refuting the allegations laid down by the American short-seller, many Adani stocks closed on the lower circuit when Indian equity exchanges closed for the week on Friday.
Incidentally, the follow-on public offering (FPO) of Adani Enterprises barely attracted investors’ attention when it opened on Friday. Only one per cent of the share sale, touted to be India’s largest FPO ever, was subscribed on its first day. The FPO is scheduled to close on 31 January.
