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Stocks associated with the Adani Group have avoided removal from MSCI Inc. indexes as the Indian conglomerate continues to grapple with the fallout from a short-seller campaign that wiped off almost half of its market value in less than two weeks.
The assessment has refocused market attention on a significant accusation made by Hindenburg Research: that many of the largest “public,” or non-insider, holders of Adani shares are offshore shell corporations and funds linked to the Adani Group.
Billionaire Gautam Adani’s firms saw a stock crisis that destroyed $117 billion in market value at one point after Hindenburg accused the group of accounting fraud and market manipulation, claims the group has vehemently denied. Adani Enterprises, the conglomerate’s main company, was forced to cancel a significant share offering at the last minute and postpone its first-ever public bond sale.
Adani Group has recently increased its efforts to reassure investors and banks by repaying loans and promising to lower debt ratios. The group’s dollar debt has fallen in value, attracting purchasers such as Oaktree Capital Management and Davidson Kempner Capital Management.
Concerns regarding financial institutions and investors’ exposure to Adani are spreading far and wide as a result of the selloff. The upheaval has disturbed parliament, and India’s biggest opposition party is increasing pressure on Prime Minister Narendra Modi for his silence on the matter.
According to Bloomberg statistics, all Adani Group firms, with the exception of Adani Wilmar Ltd. and New Delhi Television Ltd., are included in MSCI’s major indices for Asia Pacific, emerging markets, and India.
