MSCI Changes Free Float Of Four Adani Companies

MSCI reduced the free-float designation of four Adani Group securities.

The index provider has reduced the free floats of Adani Enterprises Ltd., Adani Total Gas Ltd., Adani Transmission Ltd., and ACC Ltd. MSCI said the free floats for the remaining Adani Group companies in the MSCI indices will remain the same.

MSCI defines the free float of a security as the proportion of shares outstanding that are considered available for purchase in the public equity markets by international investors. The changes take effect on March 1, 2023.

On Thursday, the index provider said that it was reviewing the free float status of Adani Group securities after market participants raised concerns about the eligibility of companies in the Adani Group for some of its indexes.

The move could lead to a total of $428 million in outflows from the four Adani Group companies, according to Nuvama Alternative & Quantitative Research. Adani Enterprises is expected to see $161 million in outflows, followed by Adani Transmission with $145 million, Adani Total Gas with $110 million, and ACC with $12 million, as per the brokerage estimate.

MSCI also added Bank of Baroda and CG Power & Industrial Solutions Ltd. to the MSCI India index but removed Biocon Ltd.