An older article but still relevent "While from an operational...

An older article but still relevent

"While from an operational perspective this development provides outstanding opportunities, just as significant is the company’s possible inclusion in the S&P/ASX 100 index and subsequent buying from fund managers both active and passive.
As it stands, Slater and Gordon is a constituent of the benchmark ASX 200 and while this index is closely followed by institutional investors, history suggests elevation to the prestigious ASX 100 is another compelling reason to strongly consider the stock.
As the size of the company double, index style investors will be forced to increase their holdings so the weighting resembles that of the index. Active managers will also take a closer look at the stock lest outperformance from Slater & Gordon sees them fall short of the benchmark.
Management has already indicated it has an eye to inclusion, citing in its comments regarding the expected financial impact of the transaction ‘it positions Slater and Gordon for inclusion in the S&P/ASX 100’.
That said, it is important to note the company’s inclusion in the ASX 100 can’t be guaranteed, nor will it necessarily trigger a share price rerating. However, there is a history of sharp share price spikes occurring at the time of index inclusion as index hugging fund managers clamber for stock in order to abide by their mandate.
Clearing the S&P hurdle
By definition the S&P/ASX 100 is comprised of the 100 largest index eligible stocks listed on the ASX by float adjusted market capitalisation. While somewhat of a mouthful, the key takeaways here are that companies in the index need to be of a substantial size by market capitalisation and may also need to be highly liquid, a factor enhanced by the number of shares on offer.
To illustrate the impact of being part of the ASX 100, it accounts for 74 per cent of the Australian equity market by capitalisation. The capital raising undertaken in order to complete the Quindell acquisition resulted in Slater and Gordon issuing nearly 140 million shares, increasing shares on issue to approximately 350 million."