Discover How FTSE's Decision on Free Float Benefits Coal India!
A recent sale offer (OFS) by a major coal company has prompted FTSE to increase the free float in Coal India Ltd (CIL), which is expected to stimulate buying activity in the company's stock. Free float refers to the portion of shares available for trading. Index funds that replicate the FTSE indices are likely to rebalance their portfolios, resulting in increased purchasing of the stock.
According to Abhilash Pagaria, the head of Nuvama Alternative & Quantitative Research, the estimated inflow from this development is around $18.5 million, equivalent to 6.6 million shares or 0.7 days of average daily volume (ADV).
This adjustment is scheduled to take place on June 7, 2023, according to Nuvama Alternative's best estimates.
For more information, please read: "Coal India OFS: What should investors do?"
After reviewing the updated shareholder information following the secondary offering, FTSE has announced that the investability weight of several indices will be modified, including the FTSE All-World Index, FTSE MPF All-World Index, FTSE Global Large Cap Index, and FTSE Emerging Index.