MSCI Inclusion May See USD 250 mln Inflows In Adani Energy Solutions

By Fnf correspondent | PUBLISHED: 16, Aug 2024, 13:58 pm IST | UPDATED: 16, Aug 2024, 13:58 pm IST

New Delhi: The shares of Adani Energy Solutions Ltd (AESL) at the last trading session on Wednesday jumped 3.8 per cent despite the flattish markets, as the street is expecting strong inflows by the end of August from the inclusion in the MSCI Index—inflows of USD 250 million according to brokerage houses.

On Tuesday MSCI announced that it has lifted ‘Embargo' on Adani Group stocks, which means the stock is eligible for inclusion in the MSCI India Index, after removing the group company last year in late January 2023, due to uncertainty over free-float.

Lifting this restriction means that any recent changes in free float plus equity raises are eligible for inclusion. Furthermore, stocks that were excluded can be included again.

Earlier in August, Adani group's power transmission, distribution and smart metering company completed a USD 1 billion QIP, which has led to a significant increase in the company's free float.

Adani Enterprises, another group company has also proposed fundraising of nearly USD 2 billion. If it goes through, it could also see USD 110 million inflows, according to brokerage firms.
However, Adani Total Gas, another group stock which was also removed from the MSCI Index last year is unlikely to be included in the near future as the stock is trading significantly below the previous year's high.