NEW DELHI: BSE subsidiary
Asia Index Private Ltd
on Monday announced the launch of a new index called the
BSE Select IPO
. The index will track the performance of newly listed stocks on the exchange, whether they are introduced through a public offering or through a spin-off or demerger process.
Asia Index said that the index will include stocks based on three major criteria which are:
- Full market capitalization
- Liquidity
- Minimum history of three months
Additionally, other than assessing the performance of newly listed companies across major sectors in India, the index will also be useful in implementing passive strategies like ETFs and index funds.
It can also be utilized for benchmarking portfolio management service (PMS) strategies, mutual fund schemes, and fund portfolios.
Ashutosh Singh, managing director and chief executive officer of Asia Index, said that the year 2024 has been remarkable for new listings in India.
“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,” he said.
The Index also stated that stock weightings will be capped at 5 percent to reduce index concentration. The index is also set to undergo reconstitution and rebalancing on a quarterly basis.
