Major setback for Gautam Adani as Adani Energy shares witness 7% downfall after…

In a major blow to billionaire Gautam Adani, the shares of Adani Energy Solutions Ltd dipped by 7% at the Bombay Stock Exchange (BSE) on Thursday.

The downfall of Adani Energy’s shares was witnessed after MSCI did not include the Adani Group company in its latest Global Standard Index.

Adani Energy shares slumped by 7.46% during trading at the BSE on Thursday, reaching a significant low of Rs 995. Thursday’s slump brought the cumulative decline of the Adani Energy stock to 5.74% for the current year. According to market insiders, the plummeting of Adani Energy shares was caused by concerns about the company being in free float following show-cause notices issued by market regulator SEBI.

Adani Energy in free float

Morgan Stanley Capital International (MSCI), a-US based company that provides global indices, benchmark products, and services to investors, excluded Adani Energy Solutions Ltd from its latest Global Standard Index, which affected the company share value. In a statement, MSCI highlighted the uncertainty surrounding free float of the Gautam Adani-led company. stating that it would not implement any increases in the Number of Shares (NOS).

MSCI, while referring to publicly available information about the SEBI notice to Adani Energy Solutions for potential misclassification of shareholding among certain entities, said it would continue to monitor Adani Group and related securities and would provide further updates as and when required.

Company reports 172% growth

However, despite the various challenges, Adani Energy Solutions has reported astonishing profits in the second quarters. In its latest earning call, the company reported a stunning 172% year-on-year growth in profits in the second quarter, owing to the increased EBITDA and a deferred tax reversal of Rs 314 crore.

Adani Energy reported a profit after tax (PAT) of Rs 459 crore, showcasing a 61.6% growth, while its revenue for the quarter increased by 68.9% year-on-year to Rs 6,360 crore, compared to last year’s Rs 3,766 crore.

Gautam Adani, the 62-year-old Chairman of the Adani Group, is one of the richest individuals in the world, with a real-time net worth of $76.3 billion, according to Forbes. Currently sitting at 21st spot on the Forbes World’s Billionaires’ list, Gautam Adani is the second richest person in India, behind Reliance Industries Chairman, Mukesh Ambani.

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