Adani Ports and Special Economic Zone share price fell nearly 5 percent in the early trade on November 29 after Morgan Stanley Capital International (MSCI) dropped the company from some of its climate Change indices.
"We are disappointed by MSCI’s decision to drop Adani Ports and Special Economic Zone (APSEZ) from some of its Climate Change indices," company clarifies in its press release.
MSCI will also drop REC and IPCA Laboratories from the index, and on the other hand, add six new companies to the list.
Adani Enterprises owns the Carmichael project. Adani Ports became a wholly-owned subsidiary in August 2020 for haulage operations from the Carmichael mine to Adani’s North Queensland Export Terminal (NQXT). Earlier in March, the BRC ownership was transferred to Adani Global Pte.
The Carmichael mine is expected to produce about 10 million tonnes of coal a year.
The Carmichael project has evoked sharp criticism from environmental groups and locals, who claim that the mine would produce 200 million tonnes of carbon dioxide during its 60-year life.
"In response to an ESG Controversy Report from MSCI in Q3, APSEZ had clarified to MSCI that it never had any shareholding in the Carmichael mine, and that it had already divested its stakes in both Bowen Rail and NQXT (North Queensland Export Terminal)."
"We had also sent a reminder to MSCI on the matter. However, MSCI has not bothered to either incorporate the facts or provide an appropriate response to APSEZ," company added.
At 09:23 hrs Adani Ports and Special Economic Zone was quoting at Rs 691.40, down Rs 26.25, or 3.66 percent on the BSE.
The share touched a 52-week high of Rs 901 and a 52-week low of Rs 407.05 on 09 June, 2021 and 27 November, 2020, respectively.Currently, it is trading 23.26 percent below its 52-week high and 69.86 percent above its 52-week low.