A report issued by short-seller Hindenburg Research said that the global index provider MSCI Morgan Stanley Capital International is looking for feedback on Adani Group and associated securities and is aware of the report by short-seller Hindenburg Research.
MSCI is closely monitoring public information regarding the situation and factors that may affect the eligibility of securities for the MSCI Global Investable Market Indexes, it said in a statement.
All Adani group shares, except Adani Wilmar, are in the MSCI Global Standard Index and FTSE Indices. Adani Ent, Adani Ports, Adani Trans, Adani Total Gas, Adani Power, Adani Power, Ambuja Adani Green are present in the MSCI Standard Index FTSE World Indices.
The US-based short seller Hindenburg Research released a scathing report on Wednesday accusing the Adani GroupAdani Group of market manipulation and accounting fraud. The report said the conglomerate is leading the biggest con in corporate history and has resulted in panic selling on Wednesday that has eroded the cumulative market value of seven listed Adani Group companies by around 1 lakh crore.
In a span of just two days, Rs 2.37 lakh crore was wiped out of the group market capitalisation at the end of Friday. Adani Total Gas, the most vauled group stock, saw its m-cap fall by Rs 76,000 crore in two days, Adani Transmission saw its m-cap plunging by Rs 63,700 crore. In Friday's trade, these two Adani group stocks were heavily battered, with a drop of up to 15 per cent. As of January 24th, the m-cap of 10 Adani group stocks has fallen 12 per cent to 16.83 lakh crore from Rs 19.20 lakh crore.
After receiving feedback and consultation, the MSCI stated that it will decide on the treatment of Adani stocks indices.
The report came at a time when the conglomerate planned a large planned fundraising attempt to raise a huge amount of Rs 20,000 from investors to fund capital expenditure and reduce debt. On Thursday, the Adani GroupAdani Group said that its shareholders and investors were adversely affected by the Hindenburg controversial report that claimed the conglomerate was engaged in accounting fraud and stock manipulation for decades.
Adani Group said on Thursday that it is evaluating remedial and punitive action under US and Indian laws.
In a statement to stock exchanges, Adani Group head of legal Jatin Jalundhwala called the Hindenburg report maliciously mischievous and unresearched. The fundraising attempt opened on Friday, instead of Wednesday, where the FPO subscribed only 1 per cent on Day 1.
The FPO's proceeds will be used for green hydrogen projects, work at the existing airports, and the construction of a greenfield expressway. Another 4,165 crore will be used for the repayment of debt taken by its airports, road and solar project subsidiaries.
On Friday, Adani Enterprises' scrip on the BSE closed 18.5 per cent lower at Rs 2,762.