Energy stock is down 9.76% to Rs. 971.60 per share after news of the stock getting excluded from the MSCI index. This has led to a steep decline in market cap.
Shares of Adani Energy Solutions tumbled 9.76% on Thursday, November 7th, after MSCI’s latest index rebalancing announcement. The energy company was notably excluded from the MSCI Global Standard Index, marking a significant setback.
Share Price Movement
The share price of Adani Energy Solutions Limited went down by 9.76 percent to Rs. 971.60 per share on Thursday, a significant drop from its previous close of Rs. 1,076.30 per share. The market capitalisation now stands at approximately Rs. 35,521 crore as of November 07, 2024.
What Happened
According to MSCI, the decision was driven by concerns surrounding Adani Energy Solutions free float. The index provider cited publicly available disclosures indicating that the company had been issued a show cause notice by the Securities and Exchange Board of India (SEBI) for potential wrongful categorisation of shareholdings.
The exclusion from the MSCI Global Standard Index has had an immediate impact on the company’s stock performance. Shares of Adani Energy Solutions plunged 9.76% to ₹971.60 per share in intraday trading, significantly lower than their recent peak of ₹1,274 in June 2024.
Financial Highlights
Despite the recent setback, Adani Energy Solutions reported a robust financial performance in its most recent Q2 FY25 results. According to its recent filing, in the quarter ending September 2024, Adani Energy Solutions Limited’s consolidated revenue from operations has increased by 68.3 percent YOY, from Rs. 3,674 crore in Q2 FY24 to Rs. 6,184 crore in Q2 FY25, and has declined by 14.96 percent QoQ from Rs. 5,379 crore in Q1 FY25.
The company’s consolidated net profit has increased by 172 percent, from Rs. 284 crore in Q2 FY24 to Rs. 733 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit is positive QoQ from negative Rs. 1,191 crore.
The company’s EPS has increased by 127 percent from Rs. 2.47 in Q2 FY24 to Rs. 5.62 in Q2 FY25.
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Shareholding Pattern
As of the November 2024 shareholding pattern, Adani Energy Solutions Limited is primarily held by the promoter with 69.94 percent, foreign institutional investors hold 18.66 percent, and the public by 6.03 percent.
Looking Ahead
MSCI has stated that it will continue to monitor Adani Group and associated securities, including those related to free float, and will issue further communication if appropriate. This uncertainty surrounding the company’s standing in the index could weigh on investor sentiment and the stock’s performance in the coming months.
About the company
Adani Green Solutions Ltd (AGEL), a prominent player in India’s renewable energy landscape, has emerged as a driving force in the country’s sustainable energy transformation. Established in 2015 as part of the Adani Group, AGEL has rapidly expanded its portfolio, solidifying its position as one of the largest renewable energy firms in India.
Headquartered in Ahmedabad, Gujarat, AGEL’s business operations span across various segments within the renewable energy sector. The company’s primary focus lies in solar power generation, where it develops large-scale solar power projects across multiple states. Additionally, AGEL has diversified into wind energy projects and has also implemented hybrid projects that combine both solar and wind energy generation.
With a current total capacity of approximately 20,434 MW across different stages of development, AGEL’s expansive project portfolio underscores its commitment to sustainable energy solutions. The company’s operational projects, along with the 12 projects currently under construction, have secured long-term power purchase agreements (PPAs) with various central and state government entities, ensuring stable revenue streams.
Written By Fazal Ul Vahab C H
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