BSE's index firm, Asia Index, launches BSE IPO Index; will measure newly listed stocks' performance

BSE's index company, Asia Index, today (Monday, November 18, 2024) launched the BSE IPO Index.

The index will track newly listed or demerged/spin off companies.

The new index measures the performance of newly listed stocks on BSE either through the IPO or the spin off/demerger process. 

Stocks are included in the index based on three primary criteria, full market capitalisation, liquidity and minimum listing history of 3 months. 

The weightages of stocks are 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.

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.”

This 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. 

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.