MSCI Announces Lower Free Float For Adani Group's Two Companies

MSCI announced on Friday that it would decrease the free float of two Adani Group companies in India, namely Adani Total Gas (ADAG.NS) and Adani Transmission (ADAI.NS) in its may index. According to the financial index provider, the free float of Adani Total Gas is now projected to be 14%, while that of Adani Transmission is expected to be 10%, down from the previous 25%.

The term "free float" refers to the portion of outstanding shares that international investors believe are available for purchase on public stock markets.

In February, MSCI postponed implementation of these updates to weightings that were due March and said "potential replicability issues" are behind the decision. Its methodology calls for indexes to be replicated "in an actual portfolio in a cost efficient matter", it said.

MSCI announced in the same month that it would be evaluating the free float classification of certain securities belonging to Adani companies. This move came after Hindenburg Research, a U.S. short seller, alleged that the companies were involved in the inappropriate use of offshore tax havens and stock manipulation.