MSCI to cut four Adani firms' weightings after reassessing free floats
World
The index provider reassessed the size of companies' free floats.
SYDNEY/NEW YORK (Reuters) - MSCI said it will cut the weightings of Adani Enterprises (ADEL.NS) and three other Adani firms in its indexes - the latest blow to the Indian conglomerate thrust into crisis by a short-seller's report.
The index provider reassessed the size of companies' free floats, having determined there was "sufficient uncertainty" surrounding some investors in Adani companies. It embarked on the review after feedback from market participants.
New York-based short-seller Hindenburg Research in a Jan. 24 report accused the Adani group of stock manipulation and improper use of offshore tax havens that obscure the extent of stock ownership of Adani family members in group firms.
The conglomerate, which has denied any wrongdoing, has since been pummeled by a stock rout that has wiped some $110 billion off the value of its main seven listed firms.
