FTSE 100 reshuffle day: Here's who's in and who's out

A couple of changes on the FTSE 100 today, as decisions from last week's quarterly review come into effect today, with the benchmark index welcoming Royal Mail and Ashtead into its ranks.

Whilst high-profile Royal Mail made it onto the blue chip list, fellow stock market debutant Merlin - who owns Madame Tussauds - only made it as far as the FTSE 250.

The moves are as follows:

In: Royal Mail

Was sold off this year, with a fair amount of contention. It floated on the London Stock Exchange on 15 October, with applications for shares at over seven times the available number.

Share prices rose by over 38 per cent, which sparked the accusations that the company had been undervalued.

This led to the grilling of investment banks involved in the sale, along with business secretary Vince Cable, by a panel of MPs probing whether it was sold off too cheaply.

Despite a persistent threat of strike action, Royal Mail and the CWU have said that a proposed settlement has been agreed on.

And now, the newly-privatised company could be the subject of a takeover bid in the new year, with predictions that it could be bought up by German Deutsche Post.

In: Ashtead

Is the tool and construction hire company that's the second-largest of its kind in the UK and US, and has gone from strength to strength.

Just over a week ago, increased its outlook for the full year and announced a 50 per cent increase in the interim dividend.

The firm buys billions of pounds worth of equipment, then rents it out. With fixed costs making up a large chunk of its total costs, and enough revenue to cover costs being earned, Ashtead is now seeing additional revenue growing profit.

Out: Vedanta

Miners have had a hard year generally, but metal miner Vedanta has had some particularly rough patches this year, with a ban on iron ore mining in Goa hurting production and a permit revocation in Zambia.

The company’s market cap is currently £2.2bn, down from £3.2bn in September.

Since September, when the last index review took place, Vedanta shares have fallen over 30 per cent.

Out: Croda

Yorkshire-based chemical company Croda will be demoted to the FTSE 250 on 23 December.

Its strong earnings growth has become sluggish in recent years, with shares down 15 per cent since September.

When it comes to stock, three analysts have rated it 'sell', but seven have issued a hold rating, nine have given a buy rating and one has issued a strong buy rating.