Bombay Stock Exchange today announced the launch of BSE IPO index that will track the value of companies for two years after listing subsequent to successful completion of their initial public offering (IPO).

In a statement, the company said it expects robust growth of the Indian economy to boost the primary market and that it is an appropriate time to introduce an indicator that will track primary market conditions in the Indian capital market.

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A scrip must have the minimum free-float market capitalisation of Rs 100 crore on its first day of listing and will be included in the index on the third day of its listing. A scrip will be excluded from the index on the second Monday of the month after completion of two years of listing. At all time a 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.

The maximum weight of any scrip shall be capped at 20 per cent and the constituent weightage shall be reviewed at the time of inclusion/ or exclusion of a scrip and on monthly rebalancing.

The base date of the index is May 3, 2004, while base index value is set to 1000 points. Index value on August 21, 2009 is 1901.67 and the index would be calculated and disseminated on a real-time basis through BOLT effective August 24, 2009.

However, follow-on public issues shall not be considered for inclusion in the index and a minimum of 10 scrips shall be maintained on the index at any given point in time, the statement added.     

Base date of the index is May 3, 2004, while base index value is set at 1000 points. Index value as on August 21, 2009, is 1901.67.     

The index would be calculated and disseminated on a real-time basis effective from today and would also be available on the website of the exchange, the statement said.

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