The Anil Agarwal-promoted Vedanta Resources has joined the FTSE-250 club at the London Stock Exchange. Vedanta Resources is a holding firm of Sterlite Industries, which raised around $1 billion in December and got listed on the LSE.
Tarun Jain, director, finance, Sterlite Industries told Business Standard: "Since our listing, Vedanta had been trying to become a part of the prestigious FTSE 250 index. We have been included in the index effective from April 1, 2004."
The FTSE 250, launched in October 1992, is a real-time benchmark for medium-sized UK companies. While FTSE 100 represents the top notch LSE listed companies, FTSE 250 refers to the next lot of large companies.
The index has been calculated back to 31 December 1985 and is also calculated with or without investment trusts. Vedanta is the first Indian company to be listed on the London Stock Exchange.
The Vedanta public issue, which was over subscribed almost five times, was the third largest in the world from a mining company, raking in bids of close to $4 billion.
The Vedanta stock, which had an initial public offer price of pound 3.9 for each share, has been on a downslide since its listing. At present, the stock price is hovering around the pound 3.3-mark.
The proceeds of the Vedanta IPO were to be utilised for Sterlite's capex plans lined up for the next couple of years. Sterlite will be investing $800 million for the expansion at Balco to take the installed capacity to 350,000 tonne a year and another $800 million for setting up an alumina refinery in Orissa with 1.4 million tonne a year.
The company has also lined up expansion of its copper capacity as well as zinc capacity at Hindustan Zinc.