Gautam Adani in 2019. The Indian billionaire has been linked to 'brazen' fraud. (Photo: Sanjeev Verma/Hindustan Times/Getty Images) It’s a boost for the billionaire, whose firms’ weightages have been adjusted on the MSCI India Index in recent months. The group is surging ahead with a string of acquisitions even as some analysts flag concerns about its level of leverage.
The inclusion of Adani Enterprises on the Nifty 50 could result in a net inflow of around $213 million for the stocks counter, while Shree Cement will see an outflow of $87 million, according to Edelweiss Securities Ltd. analyst Abhilash Pagaria.
Shares of Adani Enterprises have risen 89% this year, while all seven listed companies have rallied, led by a 310% surge in Adani Power Ltd. The group has grown rapidly, announcing plans to push into multiple new businesses, including media, healthcare and digital services.
Adani’s aggressive expansion has raised concerns, with some analysts pointing to pressure on the conglomerate’s credit metrics and cash flow.
Group firms Adani Green Energy Ltd. and Adani Transmission Ltd. have significantly higher average free float market capitalization than the flagship firm, but will not be included in the Nifty Index. Trading into their stock derivatives is not yet allowed by India’s exchanges, Pagaria wrote in a note earlier this month.