MSCI will reduce the free float of two of India’s Adani Group companies, Adani Total Gas and Adani Transmission, in its May index review, the financial index provider said on Friday.
MSCI now sees Adani Total Gas’ free float at 14% more Adani Transmission at 10%, from 25%.
Free float is defined as the proportion of outstanding shares available for purchase in public equity markets by international investors.
In February, MSCI postponed the implementation of these updates for a wait that was due in March, saying “potential replication issues” are behind the decision. Its methodology seeks to replicate the index “in a real portfolio in a cost-efficient case”.
MSCI also said in the same month that it would review the free float designation of securities of some Adani firms after US short seller Hindenburg Research accused it of improper use of offshore tax havens and stock manipulation.
The text of this story is published from a wire agency feed without any modification. Only the headline has been changed.
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