MSCI Postpones Index Weighting Changes For Two Adani Stocks
It has cited 'potential replicability issues due to impact from price limit mechanisms.'
Index provider MSCI said on Wednesday it will postpone implementation of updates to weightings for two of Adani Group companies—Adani Total Gas and Adani Transmission—to the May benchmark review.
MSCI said that the reversal of the updates to these two Adani Group companies in the February index review, will reflect from Feb. 16.
MSCI said it will apply "special treatment" for all Adani Group’s associated securities in the MSCI equity indexes starting from the February 2023 index review in light of "potential replicability issues as well as ongoing uncertainty with relation to key input data for index construction for the Adani Group's associated securities."
The changes will now be made in its May 2023 index review.
On Feb. 10, MSCI reduced the free floats of Adani Enterprises Ltd., Adani Total Gas Ltd., Adani Transmission Ltd., and ACC Ltd.
It will not implement any changes in non-market capitalisation weighted indexes and custom indexes such as the MSCI Factor, ESG, Thematic and Capped Indexes for any of the eight Adani Group stocks in its coverage -- ACC, Adani Enterprises, Adani Green Energy, Adani Ports and SEZ, Adani Power, Adani Total Gas, Adani Transmission and Ambuja Cements.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
