Index provider MSCI seeks feedback from Adani Group over Hindenburg report

New Delhi: Index provider MSCI on Saturday said it has sought feedback from Adani group securities after a report by US-based investment research firm Hindenburg alleged stock manipulation and accounting fraud by the conglomerate.

The index provider said it is aware of the reports recently published regarding the Adani group and associated securities.

“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.

The index provider said it welcomes timely feedback from market participants on these issues.

At present, there are eight Adani group & associates companies which are the part of MSCI Standard Index.

Market experts believe any adverse feedback may lead to a reduction in weightage or even exclusion of Adani stocks from the MSCI index.

This might further increase the selling pressure in Adani group stocks, which took a beating for the past two trading sessions and losing over Rs 4.17 lakh crore from the combined market valuation of listed firms.

Market experts believe that MSCI will not take any action until the feedback process is concluded.

On Wednesday, Hindenburg, which specialises in activist short-selling, made allegations of market manipulation and accounting fraud against Adani Group.

The report was released just before Adani group’s flagship company, Adani Enterprises’ Rs 20,000 crore share offering opened to investors. The disclosure led to shares of Adani Group took a beating on the stock exchanges.

The FPO, which opened on January 27, will conclude on January 31.

Meanwhile, Billionaire Gautam Adani’s group on Saturday ruled out any changes in price or the dates of the Rs 20,000 crore follow-on share sale at the conglomerate’s flagship firm despite its stocks being hammered below the offer price after a scathing report by a US short

seller.

“Adani Enterprises Limited’s further public offer (FPO) is going as per schedule and the announced price band. There is no change in either the schedule of the issue price,” a group spokesperson said.

The FPO got subscribed just one per cent on the opening day on Friday. Against an offer of 4.55 crore shares of Adani Enterprises Ltd, only 4.7 lakh shares were subscribed, according to information available from the BSE.

Adani Enterprises is selling shares in a price band of Rs 3,112 to Rs 3,276. On Friday, its share price closed at Rs 2,762.15 on the BSE.

“All our stakeholders including bankers and investors have full faith in the FPO. We are extremely confident about the success of the FPO,” the spokesperson added.