MSCI to lower free float of two Adani companies

(Reuters) - MSCI will lower the free float of two of India's Adani Group companies, Adani Total Gas and Adani Transmission in its May index review, the financial index provider said on Friday.

MSCI now sees the Adani Total Gas' free float at 14% and Adani Transmission at 10%, from 25%.

Free float is defined as the proportion of outstanding shares considered available for purchase in public equity markets by international investors.

In February, MSCI postponed implementation of these updates to weightings that were due March and said "potential replicability issues" are behind the decision. Its methodology calls for indexes to be replicated "in an actual portfolio in a cost efficient matter", it said.

MSCI also said in the same month it will review the free float designation of some of the Adani firms' securities after U.S. short seller Hindenburg Research accused it of improper use of offshore tax havens and stock manipulation.

(Reporting by Jahnavi Nidumolu in Bengaluru; editing by Diane Craft)