BSE launches new 'IPO index'

BSE launches new 'IPO index'

Will track companies for 2 years

The guidelines issued by Bombay Stock Exchange envisage that any company seeking listing on the exchange after the completion of the initial public offering shall be considered eligible for inclusion in the index, but follow-on public issues shall not be considered for inclusion.

Besides, 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. A minimum of 10 scrips shall be maintained in the index at any given time. 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, it said.Also, 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 the index would be calculated and disseminated on a real-time basis through BOLT (BSE on-line-trading) effective August 24, 2009, the statement said and pointed out that the base index value is set to 1000 points, while the Index value on August 21, 2009 is 1901.67.

However, follow-on public issue offerings (FPOs) shall not be considered for inclusion in the index, the statement added.

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