London-based FTSE Russell will remove Indian firm STL Networks Ltd. from the FTSE Global Small Cap Index for failing to list shares in the market. The deletion will be effective May 27.
STL Networks demerged Sterlite Technologies in April. Since STL Networks did not commence trading after 20 business days and no firm trading date has been announced, FTSE said the decision to remove it from the index was made.
Sterlite Technologies completed the demerger of its global services business, which will transition from Sterlite Technologies to STL Networks under the brand name 'Invenia'. Shareholders of Sterlite Tech will receive one share of STL Networks per share held.
The process of listing the demerged entity could take 60-90 days and more.
Foreign index providers like MSCI and FTSE indices have a 30-day deadline, within which, the demerged entities are required to list, pending which, it segregates these unlisted companies from the portfolio.
Siemens India Ltd. is yet to announce the date of listing for demerged energy arm Siemens Energy Ltd. FTSE has already warned of removing Siemens Energy due to uncertainty of the listing date.
Recent demergers like ITC Hotels Ltd. and Jio Financial Services Ltd. listed 23-33 days after the global index providers warned of removing them after 30 days, but Piramal Pharma and NMDC Steel took longer.
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