The Bombay Stock Exchange on Monday launched a new BSE IPO index to track the value of companies for two years after listing on the bourse.
For being listed on the index a scrip must have the minimum free-float market capitalisation of Rs 100 crore (Rs 1 billion) on its first day of listing, the exchange said in a statement, adding the market capitalisation weightings of the index constituents would be limited to 20 per cent.
Currently, the index has as many as 48 scrips, including Reliance Power, the biggest constituent with a weightage of 18.40 per cent.
Other heavyweights in the index include Power Grid Corporation of India Ltd (16.68 per cent), Mundra Port (10.39 per cent), the recently listed Adani Power (8.28 per cent) and
Rural Electrification Corporation (8.23 per cent) among many others.
The launch of this index comes amid a flurry of new issues in the primary market and an expectation that the robust 6.7 per cent growth rate for 2008-09 would aid the primary market further.
"For this and other reasons, it is an appropriate time to introduce to the market an indicator that will track primary market conditions in the Indian capital market," it said.
