Index provider MSCI said on Thursday it had determined that some Adani securities should no longer be designated as free float after market participants raised concerns about the eligibility of the Indian conglomerate's companies for some of its indexes.
The group led by billionaire Gautam Adani has been engulfed in crisis since U.S. short-seller Hindenburg Research published a report on Jan. 24 accusing the conglomerate of improper use of offshore tax havens and stock manipulation. It also raised concern about high levels of debt and what it said were excessive valuations.
In response to the MSCI statement, Hindenburg founder Nathan Anderson wrote on Twitter: "We view this as validation of our findings". The Adani Group has denied the allegations, saying the short-seller's narrative of stock manipulation has "no basis" and stems from an ignorance of Indian law. The report and its aftermath wiped out $110 billion off Adani's seven main listed stocks in slightly more than a week, and its flagship Adani EnterprisesSome of the companies' shares have since regained some ground.
Hindenburg has said it had taken short positions in Adani's U.S.-traded bonds and non-Indian traded derivatives.Our Standards:
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Adani Hindenburg: Adani Group selloff eclipses Enron, WirecardThe massive selloff in Adani shares eclipses those of other short-seller targets like Enron and Wirecard
Read more »
Analysis: Despite stupendous win on Adani, India short-selling boom unlikelyHindenburg Research's spectacular short bet against India's Adani group could lead other investors to consider using similar strategies in the South Asian nation but regulatory hurdles and shareholding constraints will make them tough to implement.
Read more »
Adani Group’s troubles spur protests in India as stock turmoil turns politicalDemonstrators from the opposition Congress party demanded an investigation into allegations of fraud and stock price manipulation by India’s second-biggest business group.
Read more »
Adani group shares rally after $113 billion market wipeoutAdani group shares surged on Tuesday, a day after it moved to prepay some loans, in a relief rally for the Indian conglomerate that lost more than $113 billion in market value in two weeks since a U.S. short-seller's critical report was published.
Read more »
Adani vs Hindenburg: India market crisis is a political issue for ModiIndia's stock market crisis isn't just the Adani Group's problem - it's a political issue for Prime Minister Modi too
Read more »
India's Adani Ports says Q3 profit drops; to cut capex, repay debt next yearAdani Ports and Special Economic Zone Ltd , part of the embattled Adani Group, posted a lower quarterly profit on Tuesday as forex losses soared, and said it would pay back about 13% of its outstanding debt next fiscal and halve its capital expenses.
Read more »