Asia Index, a wholly owned subsidiary of BSE, announced the launch of BSE Select IPO on Monday.
The index measures the performance of newly listed stocks on BSE either through an IPO or spin off/demerger process. Stocks are included in the index based on three primary criteria, full market capitalization, liquidity and minimum listing history of three months. The weightages of stocks are capped at 5 per cent to lower index concentration.
The index has a base value of 1,000, and the first value date is May 30, 2014. It will be reconstituted and rebalanced on a quarterly basis.
Passive strategies
The 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.
Ashutosh Singh, MD and CEO of Asia Index, said: “It has been a spectacular year for new listings with India emerging among the top three 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.”