Vedanta made a bumpy start today, down over 3 per cent, even as the company was added to the benchmark Sensex with effect from June 18.
The scrip was trading 3.02 per cent lower at Rs 231.55 at around 9.41 am.
The Sensex slipped 51 points, or 0.14 per cent, at 35,571 at around the same time.As a part of the reshuffle, Vedanta replaced Dr Reddy's Laboratories in the Sensex pack.With the inclusion of Vedanta, the metal sector's weight in the pack will go up to 2.6 per cent from 1 per cent, but it is still a far cry from the peak of 8.1 per cent in FY11.
The Sensex EPS for FY19 and FY20 is seen to register upgrades of 1.7 per cent and 1.8 per cent, mainly because of a higher increase in free float PAT.
The free float market cap of the new stock to be included is 1.7 times of the one to be excluded from the index, according to a study by Motilal Oswal Securities.In a BSE filing, Vedanta on Friday said, We would like to inform you that today (Friday) our wholly owned subsidiary, Vedanta Star has been allotted 176,55,06,078 fully paid up equity shares of Rs 10 each in Electrosteel Steels as per the approved Resolution Plan.
Pursuant the aforementioned allotment, our company now holds 90 per cent of the paid up share capital of ESL through VSL.