Float fever to shake up FTSE indices in reshuffle

Michael Bow
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THE ROYAL Mail could break into the FTSE 100 tomorrow, one of several newly listed companies which are candidates to join the FTSE in its quarterly reshuffle.

The postal group is set to knock Vedanta Resources out of the blue chip index after its bumper share price rise since its float made it one of the biggest companies in the country. Vedanta is due to join the FTSE 250 index if it is demoted.

The London Stock Exchange reshuffles companies every quarter based on the size of the their market capitalisation, a measure of how much the company is worth. It takes the share price at the end of trading today to value the companies. Other newly listed firms that could join the FTSE 250 include Legoland operator Merlin Entertainments and Foxtons Group. Firms also eligible for inclusion in the FTSE 250 include Carphone Warehouse, Grafton Group, Riverstone Energy and JD Sports. Companies that could fall out of the FTSE 250 include Chemring Group, Hochschild Mining and Carpetright.

Menzies and Greggs could also be bumped down in the reshuffle.

All of the moves are subject to the final decision and approval of the FTSE EMEA Committee, which will meet tomorrow to decide on the lists.