Daily Brief India: Adani Enterprises, Adani Green Energy, Pidilite Industries and more

In today’s briefing:

Who Will Now Fund Adani Enterprises’ Liquidity Gap?
Adani Group: Upcoming & Potential Index Impacts
Quiddity Leaderboard for BSE/SENSEX Jun 23: Mixed Expectations for Adani Names. Some Lose. Some Win.

Who Will Now Fund Adani Enterprises’ Liquidity Gap?

Rescinding of Rs 200 bn FPO deprives the company of much needed long-term funds
Company has a liquidity issue as this analyst estimates its short term borrowing exceeds its short term borrowing limit and it requires long term funds to bridge the gap
With foreign and private sector banks unwilling to increase exposure, the company needs to inject funds from founder entities, divest assets, reduce capex and improve working capital to infuse liquidity.

A decrease in FIF on Adani Enterprises (ADE IN), Adani Transmission (ADANIT IN) and Adani Total Gas (ATGL IN) will result in selling from passive MSCI trackers on 28 February.
At the last close, Adani Power (ADANI IN), Adani Total Gas (ATGL IN) and Adani Transmission (ADANIT IN) are at risk of being deleted from the MSCI India in May.
We believe it is unlikely that MSCI will add the Additional Surveillance Measures companies to the list of Ineligible Boards for India, though we cannot rule it out completely.

In this insight, we take a look at the Potential ADDs/DELs for the BSE SENSEX, 100, 200, and 500 Indices in the June 2023 Rebalance.
The sharp price drops experienced by the Adani Group companies have resulted in a negative change in index flow expectations for some names.
However, some Adani Group companies could be experiencing positive index flows in the June 2023 rebalance due to some peculiar derivative-linkage requirements in the index methodology.

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