Asia Index Private Ltd, a subsidiary of BSE, on Monday announced the launch of a new index - BSE Select IPO - to measure the performance of newly listed stocks on the bourse either through a public issue or spin-off/demerger process. Stocks are included in the index based on three primary criteria -- full market capitalisation, liquidity and minimum listing history of three months, Asia Index said in a statement.
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.
Also, it can be used for benchmarking portfolio management service strategies, mutual fund schemes and fund portfolios.
"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," Ashutosh Singh, Managing Director and Chief Executive Officer of Asia Index, said.
Asia Index said that stock weightages are capped at 5% to lower index concentration. The index will be reconstituted and rebalanced on a quarterly basis.
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