Aston Martin Is on the Verge of Being Removed from the FTSE 250 Index

Legendary British luxury carmaker Aston Martin may be removed from the FTSE 250 index, according to a statement from FTSE Russell released on Tuesday, August 25. The decision to delist will be confirmed after the market closes on September 2, after which Aston Martin will be reclassified as a small-cap company, according to Bloomberg.

This underscores the challenges facing the automaker’s protracted recovery, the agency notes. It has been part of the FTSE 250 index since its listing on the London Stock Exchange in 2018. But since then, the company’s stock has plummeted by more than 99%, and its current market capitalization stands at about 343 million pounds ($467 million).

This year, Aston Martin’s stock has fallen 45% amid mounting losses, delays in the release of new models, and quality issues. The automaker has repeatedly had to raise additional capital to stay in business. In July, it received 550 million pounds sterling (approximately $736 million) from HPS Investment Partners, an investment firm owned by BlackRock.

Removal from the index will force funds that are required to track its composition to sell shares of the British automaker. According to JPMorgan strategists, this could result in the sale of about 4.2 million Aston Martin shares worth $1.9 million. Bloomberg suggests that some funds may have already begun reducing their positions in anticipation of the index revisions.

During trading on August 25, the company's shares rose 2.8%. The delisting notice was published after the London market closed.

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