Adani Energy Solutions Share Trade In Red Despite MSCI Inclusion

The Adani group's companies and their shares, which were stuck in a whirlwind after the recent tranche of revelations from Hindenburg research, are now en route to recovery.

Adani Energy Solutions Shares Down

However, Adani Energy Solutions continues to trade with deep cuts despite that. In fact, the recent development of lifting an embargo on Adani companies aided some of the entities that are a part of the Ahmedabad-based conglomerate.

It was at the beginning of the week on Tuesday that the MSCI announced that it had lifted the 'Embargo' on Adani Group stocks. These stocks are now eligible for inclusion in the MSCI India Index. The group and its listed companies were removed from the index last year, in late January 2023, due to uncertainty over free-float.

In addition, at the time of the announcement, some reports said that the company may receive an inflow of USD 250 million or Rs 2,099 crore.

It is interesting to note that the shares of Adani Energy Solutions jumped after the announcement, despite the markets observing a larger lull in trading activities.

In Q1 earnings, the company accrued a total revenue of Rs 5,378.55 crore in the quarter that concluded in June 2024. This was greater when a year-on-year comparison is drawn, as the company generated a total revenue of Rs 3,663.91 crore in June 2023.

At 13:35 IST, the Adani Energy Solutions shares dropped by 2.83 per cent or Rs 31.50, taking the value of the shares to Rs 1,082.20 per share.  

What is the MSCI Index?

The MSCI World is a stock market index of 1,643 'world' stocks. It is maintained by MSCI Inc., formerly Morgan Stanley Capital International. The MSCI is used as a common benchmark for 'world' or 'global' stock funds.

The Hindenburg Allegations

In a second tranche of major allegations, the US-based short-selling group alleged that the country's market regulator, the Security Exchange Board Of India chairperson, Madhabi Puri Buch and her spouse, Dhaval Buch have stakes in Adani's off shore entities, that were at core of the controversy, when the group came out with allegations of violations last year.