Index provider MSCI said on Thursday 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.
Characteristics of certain investors have "sufficient uncertainty" and should no longer be designated as free float, which triggered a review of the Adani Group securities, MSCI said in a statement.
MSCI defines the free float of a security as the outstanding shares available for purchase in the public equity markets by international investors.
After a review of the Adani Group securities, MSCI will implement the resultant free float changes and associated market capitalisation determinations in the "February 2023 Index Review."
The index review scheduled to be announced on Feb. 9, which will announce the suspension of any potential changes to the number of shares for the affected securities, MSCI said.
All the affected securities will also be reviewed under the 'Full Country Float Review' during the May 2023 Index review, it said.
Adani group stocks declined in trade on Thursday. Adani Enterprises Ltd. slumped as much as 20% intraday after rising in the beginning of the week.
Only, Adani Wilmar Ltd. advanced among the group stocks.
Disclaimer: Adani Enterprises is in the process of acquiring a 49% stake in Quintillion Business Media Ltd., the owner of BQ Prime.
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