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| Essar Energy makes it to FTSE 100 Index |
| S Kalyana Ramanathan / London Jun 10, 2010, 00:30 IST |
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A little over a month after listing its IPO on the London Stock Exchange (LSE), Essar Energy has joined the elite group of blue-chip companies that are part of the coveted FTSE 100 Index. Essar Energy will be joined by gold producer, African Barrick Gold in this debut entry into the FTSE 100 list.
Barely an hour after the LSE closed for trading today, FTSE Group announced the entry of India's integrated energy company into the primary index. “FTSE Group confirms today that gold producer African Barrick Gold and Essar Energy will be joining the FTSE 100 Index for the first time. In the re-balance, Thomas Cook Group and the London Stock Exchange Group will leave UK’s leading blue-chip Index and join the FTSE 250 Index," it said in a media release.
Essar Energy will only be the second company with Indian promoters to feature on the index. The Anil Agarwal-controlled mining major Vedanta Resources is on the FTSE 100 list since December 2003.
Changes from this review will be implemented at the close of business on Friday, June 18 and will take effect from the start of trading on Monday June 21, FTSE Group said.
The FTSE 100 Index represents the 100 biggest UK blue-chip companies by market capitalisation. The index currently reflects approximately 85 per cent of the UK market, providing a broad and accurate investment tool for pension funds, financial products and investment portfolios in the UK and around the globe.
Entry into the FTSE 100 had been a stated goal for the Indian energy major. The timing of the issue, its listing and free float were all specifically designed to ensure that the company makes a smooth entry into the FTSE 100 list.
At the close of today's trading, Essar Energy stock was priced at 449.50 pence — 2.63 per cent higher than the previous close. The company had raised around $1.95 billion by selling 23 per cent stake to institutional investors. The shares were sold at 420 pence each and went to list on the LSE in the first week of May this year.
The FTSE 100 constituents are reviewed on a quarterly basis. Apart from market capitalisation, aspiring stocks must satisfy several other conditions before they can be admitted into the list.
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