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Shares of Adani Energy Solutions fell over 9 per cent on November 7 as MSCI didn’t add the stock to its standard index in November review
Adani Energy Share Price Today
Shares of Adani Energy Solutions fell over 9 per cent on November 7 as MSCI didn’t add the stock to its standard index in November review as it awaits clarity on free float.
Stocks like BSE, Voltas, Alkem Laboratories, Kalyan Jewellers and Oberoi Realty will now be a part of MSCI Global Standard Index following its latest rejig on November 7.
Meanwhile, expectations were running high over Adani Energy’s inclusion to the index, however, the stock failed to make the cut. The MSCI also provided a detailed explanation for not considering the stock, citing low confidence about the its free float.
In a release, MSCI cited publicly available disclosures, where Adani Energy Solutions was issued a show cause notice by the Securities Exchange Board of India (SEBI) for potential wrongful categorisation of shareholding of certain entities.
“Consequently, in light of the uncertainty regarding its free float, MSCI will not implement any increases in the Number of Shares (NOS), Foreign Inclusion Factor (FIF) and Domestic Inclusion Factor (DIF) for Adani Energy Solutions as part of the November 2024 Index Review and until otherwise announced,” MSCI said.
MSCI said it continued to monitor Adani Group and associated securities, including related to free float, and would issue further communication if appropriate.
Recently, Adani Energy Solutions reported a Q2 profit growth 172 per cent YoY, translating from higher Ebitda and aided by deferred tax reversal (MAT entitlement of previous years) of Rs 314 crore.
Excluding deferred tax reversal (MAT entitlement), PAT came in at Rs 459 crore, up 61.6 per cent. Revenue for the quarter was up 68.9 per cent YoY at Rs 6,360 crore compared with Rs 3,766 crore YoY. The capex as of 1HFY25 was Rs 4,400 crore, as against Rs 2,622 crore in 1HFY24
The company has secured approval from CERC for transferring the inter-state energy trading license from Adani Enterprises. This license will enable AESL to provide customized power solutions to C&I customers.
“From the conviction list, only Adani Energy did not make the cut. MSCI provided a detailed explanation for not considering the stock, citing low confidence about the stock’s free float. Additionally, MSCI has reduced the float in two other entities,” Nuvama Institutional Equities noted.
Adani Green Energy may see $173 million outflows, while another Adani group counter Adani Power may see $111 million outflows, the brokerage said.
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