In a big relief to Adani shareholders, global index provider Morgan Stanley Capital International (MSCI) has announced the lifting of the freeze on Adani Group equities, after the current controversy around the Hindenburg 2nd report on Adani and SEBI Chairperson connection.
MSCI will adopt these modifications starting today, August 2024. The changes will include modifications to Adani Group's Number of Shares (NOS), Foreign Inclusion Factor (FIF), and Domestic Inclusion Factor (DIF) and related instruments.
According to the release, these adjustments will take effect at the end of August 30 and be fully implemented by September 2. MSCI indicated that it will restart the usual execution of corporate events for these securities beginning September 2.
MSCI on removing the freeze on Adani stocks
"MSCI clarifies that beginning with the August 2024 Index Review, MSCI will implement the index review changes, including changes in the Number of Shares (NOS), Foreign Inclusion Factor (FIF), and Domestic Inclusion Factor (DIF) of Adani Group and associated securities that were previously postponed."
MSCI also announced that it will restart the normal implementation of corporate events for these securities on September 2, 2024. The proforma FIF and DIF for these equities are released along with the August 2024 Index Review announcement. The amendments will take effect as of August 30, 2024 (September 2, 2024).
Despite removing the freeze, MSCI stated that it will continue to closely monitor the Adani Group and its related securities, notably their free float status.
The index provider said that it would release more notifications if necessary, implying that the group is still under surveillance.
MSCI added eight Indian stocks to its list
In addition to updates on Adani equities, MSCI announced the addition of eight new securities to its MSCI India Index.
Dixon Technologies (India), Oil India, Oracle Financial Services Software, Prestige Estates Projects, Rail Vikas Nigam, Vodafone Idea, and Zydus Lifesciences have been included to the MSCI India Index, according to a statement by index compiler MSCI.
According to the statement, the changes in components for the MSCI Global Standard Indexes will take effect at the end of August 30, 2024. Bandhan Bank will withdraw from the MSCI India Index, it stated.
On the BSE, shares of Rail Vikas Nigam increased by 4.61%, Dixon Technologies by 3.29%, Oil India by 3.21%, Oracle Financial Services Software by 1.95%, and Prestige Estates by 1.46%.
However, Vodafone Idea and Zydus Lifesciences were trading down.
