Asia Index Private Ltd., a wholly owned subsidiary of BSE, on Monday announced the launch of a new index- BSE Select IPO. The BSE Select IPO index would measure the performance of newly listed stocks on BSE either through an IPO or spin off or demerger process.
As per a press release, stocks would be included in the index based on three primary criteria, full market capitalisation, liquidity and minimum listing history of three months. The weightages of stocks would be capped at 5 per cent to lower index concentration. The index has a base value of 1000, and the first value date is May 30, 2014. It will be reconstituted and rebalanced on a quarterly basis.
BSE already has BSE IPO and BSE SME IPO indices. The BSE IPO index tracks the performance of stocks listed via initial public offerings (IPOs), over a one-year period from their listing date. The index is weighted by float-adjusted market capitalisation, subject to an individual stock weight cap of 20 per cent.
In the case of BSE SME IPO, the index tracks the performance of Small and Medium Enterprises (SMEs) listed via IPOs on BSE’s SME Platform, over a one-year period from their respective listing date
Speaking on the launch, Ashutosh Singh, MD and CEO of Asia Index Pvt. Ltd said “2024 has been a spectacular year for new listings with India emerging among the top 3 markets globally both in terms of monies raised and companies listed. The strong showing of new listings is expected to continue as companies look at unlocking values and planning for their next stage of growth to align with the rising opportunities that will come with India’s status of being the fastest growing large economy.”
The new index can be used for running passive strategies such as ETFs and index funds as well as gauging the performance of new companies across all the major sectors in India, the release read
It can also be used for benchmarking of PMS strategies, MF schemes and fund portfolios. Investors can access a broader spectrum of market opportunities, further enriching their investment strategies with this latest addition to BSE's suite of indices.