Shares in Adani Energy Solutions Ltd fell 7 percent in trading on Thursday after MSCI, in its latest reshuffle, did not include the Adani group company in the MSCI Global Standard index, citing concerns about its free float. Shares of Adani group fell 7.46% to a low of Rs 995 per BSE. With this, the stock is down 5.74% in 2024 so far.

In a statement, MSCI cited publicly available disclosures in which Adani Energy Solutions was issued a show-cause notice by the Securities Exchange Board of India (SEBI) for potential misclassification of certain entities’ shares.

“Consequently, given the uncertainty regarding the free float, MSCI will not implement any increase in the number of shares (NOS), foreign inclusion factor (FIF) and domestic inclusion factor (DIF) for Adani Energy Solutions as part of the month of November. 2024 Index Review and until further notice,” MSCI said.

MSCI said it continued to monitor the Adani Group and associated securities, including those related to free float, and would issue further communications as appropriate.

Recently, Adani Energy Solutions reported a 172% rise in Q2 profit from last year, translated from higher Ebitda and helped by reversal of deferred tax (prior years MAT entitlement) of Rs 314 crore.

Excluding reversal of deferred tax (MAT right), PAT stood at Rs 459 crore, up 61.6%. Revenue for the quarter rose 68.9% YoY to Rs 6,360 crore compared to Rs 3,766 crore. Capex in 1HFY25 was Rs 4,400 crore as against Rs 2,622 crore in 1HFY24

The company has obtained approval from CERC for the transfer of interstate power trading license from Adani Enterprises. This license will enable AESL to provide customized power solutions to C&I customers.

“Of the list of condemnations, only Adani Energy did not make the cut. MSCI provided a detailed explanation for not considering the stock, citing low confidence in the free float of the shares. In addition, MSCI reduced the float in two other entities,” declared Nuvama Institutional. Scored actions.

Adani Green Energy could see outflows of $173 million, while another Adani group counter, Adani Power, could see outflows of $111 million, the brokerage said.