Why Adani shares are falling despite ₹8500 crore fund raise plans — explained | Mint – Mint

Adani shares are under pressure in early morning deals even though Adani Group companies have announced to raise fund up to 8,500 crore through issuance of fresh issues. During opening bell today, all 10 Adani group shares turned red. Adani total Gas, Adani Transmission, Adani Enterprises, Adani Power and Adani Green Energy shares were among the Adani group companies that lost maximum during morning deals on Monday.
Adani Total Gas shares lost maximum among all Adani shares as it tumbled around 5 per cent while Adani Transmission share price today lost around 4.50 per cent. Adani Enterprises share price today lost around 3.50 per cent while Adani Power shares lost to the tune of 3 per cent. Adani Green Energy shares went off over 2 per cent. Shares of Adani Wilmar and Adani Ports lost to the tune of one per cent.
According to stock market experts, Adani shares are falling after MSCI Index rejig and recent fund raise programme is unable to pare the negative sentiments emerged after this MSCI announcement. They said that foreign institutional investors (both FIIs and FPIs), who invest in index fund follow MSCI Index and Morgan Stanley has announced to drop Adani Total Gas and Adani Transmission, which would lead to FIIs and FPIs fishing out money from these Adani group shares.

Reason for Adani share price fall

On why Adani shares are nosediving despite fund raise announcement by Adani group, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Adani shares are under pressure due to MSCI’s index rejig and that loss is unable to match with the fund raise announcement. Both FIIs and FPIs who invest in index funds follow MSCI index and due to this rejig, Adani group shares are under sell off heat.”
Morgan Stanley Capital International (MSCI) took the decision as part of its quarterly comprehensive index review. The MSCI has changed its index’s calculation on the number of shares considered freely tradable in the public market for the two companies. The order will be effective at the close of trading on May 31.

Adani Transmission fund raise

On Saturday last week, Adani Transmission informed Indian bourses about 8500 crore fund raise citing, “This is with reference to our letter dated May 10, 2023. We wish to inform you that the board of directors of the Company (the “Board”), at its meeting held today, i.e. May 13, 2023, commenced at 12:00 noon and concluded at 12.45 p.m., has inter-alia approved raising of funds by way of issuance of such number of equity shares having face value of 10 each of the Company (“Equity Shares”) and / or other eligible securities or any combination thereof (hereinafter referred to as “Securities”), for an aggregate amount not exceeding 8,500 Crores (Rupees Eight Thousand Five Hundred Crores only) or an equivalent amount thereof by way of Qualified Institutional Placement (“QIP”) or other permissible mode in accordance with the applicable laws, subject to the receipt of the necessary approvals including the approval of the members of the Company and other regulatory / statutory approvals, as may be required.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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