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 BSE IPO Index

Introduction

BSE introduced the new index series - BSE IPO index to track the current primary market conditions in the Indian capital market and measure the growth in investor’s wealth within a period of two years after listing of a company subsequent to successful completion of initial public offering (IPO).

Robust growth of the Indian economy, 6.7% in 2008-09, and the expectation of higher growth in the future are expected to boost the primary market. For this and other reasons, it was an appropriate time to introduce to the market an indicator that will track primary market conditions in the Indian capital market.

BSE on August 24, 2009 announced the launch of BSE IPO index to track the value of companies for two years after listing subsequent to successful completion of their initial public offering (IPO).

BSE continued to introduce index innovations with the launch of the IPO index, by introducing ceiling (capping) on weightings of index constituents. Market capitalisation weightings of index constituents is limited to 20%. If a constituent’s market capitalization results in a higher weighting, the company’s weight is suitably adjusted to ensure that all constituents are restricted to 20% in the index. However, between any rebalancing, weightage of any index constituent can exceed 20%.

 Index Specification:

Base Date

May 3, 2004 

Base Index Value

1000

Date of Launch

August 24, 2009

Method of calculation

Free-float market capitalization

Number of scrips

Variable

Index Constituents

Click here for list of constituents

Index calculation frequency

Real Time

Index calculation and Maintenance

Click here for Index calculation and maintenance

Index Reach

Click here for scrip-wise, sector wise market capitalization, weightage etc.

Market Capitalization and Turnover Coverage

Click here for market capitalization and turnover coverage

Historical Values of Index

Click here for historical index values

Historical Notices

Click here to search Historical Notices on Index Replacements

Historical Replacements

 Click here for historical replacements

  Scrip Selection Criteria:

  1. Company seeking listing on the Exchange after completion of IPO shall be considered eligible for inclusion in the index.  Follow-on public issue shall be considered ineligible for inclusion in the index

  2. A scrip must have minimum free-float market capitalisation of Rs. 100 crores on first day of listing

  3. A scrip will be included in the index on third day of its listing subject to fulfillment of minimum free-float market capitalisation criteria stated above

  4. A scrip will be excluded from the index on second Monday of the month after completion of two years of listing

  5. At all time minimum of 10 scrips shall be maintained in the index.  In case, there are less than 10 companies on account of possible exclusion after two years, the exclusion of such company shall be delayed till such time new inclusion is made in the index

  6. Maximum weight of any scrip shall be capped at 20%.  The constituent weightage shall be reviewed at the time of inclusion/ exclusion of a scrip and on monthly rebalancing.  However, between any rebalancing, weightage of any index constituent can exceed 20%