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BSE Launches IPO Index

The stock exchange will track the performances of newly-listed companies

The Bombay Stock Exchange (BSE) is be getting more and more innovative and investor-friendly by the day. The latest step that it has taken is to enable the tracking of the primary market conditions on bourses.

Considering the penchant of Indian investors to invest in anything that is new, that has made initial public offerings (IPOs) the rage that they are, the BSE has introduced an indicator, called the IPO index, which would track the value of newly-listed companies for a period of two years after listing.

The launch by the BSE of its IPO Index may have been well-time considering that the Indian economy, currently growing at 6.7 per cent as well as rising secondary markets, may well fuel an IPO binge in the near future.

The IPO index will have a ceiling (cap) on weights accorded to index constituents while market capitalization weightings of index constituents will be limited to 20 per cent.

If a constituent’s market capitalization would result in a higher weighting, the company’s weight will be suitably adjusted to ensure that no single company has a weight in excess of 20 per cent on the index. However, in the period between the rebalancing exercise, weightage of any index constituent can exceed 20 per cent.

There are already 48 stocks which are constituents of the BSE IPO Index as of now. The top three stocks as far as weight in index are Reliance Power with 18.40 per cent while Power Grid Corporation of India stands at second place with 16.68 per cent. Mundra Port and Special Economic Zone stands at number three with 10.39 per cent.

Summary of guidelines followed for BSE IPO index are as follows:
A company seeking listing on the Exchange after completion of IPO shall be considered eligible for inclusion in the index. Follow-on public issues shall not be considered for inclusion in the index.

A scrip must have the minimum free-float market capitalisation of Rs. 100 crores on its first day of listing

A scrip will be included in the index on the third day of its listing (T+2) subject to fulfillment of the minimum free-float market capitalisation criteria stated above.

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%. The constituent weightage shall be reviewed at the time of inclusion/ exclusion of a scrip and on monthly rebalancing. However, between any rebalancing, weightage of any index constituent can exceed 20%

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.

The index would be calculated and disseminated on a real-time basis through BOLT effective August 24, 2009 and shall also be available on our website.


BSE IPO Index Constituents:
Sr. No.  Code  Name  Mkt. Cap. (Rs. Cr.) on 21/08/2009  Free-Float Adj. Factor  Capping Factor  Cap. Adjusted FF Mkt. Cap. (Rs. Cr.)  Weight in Index (%)
1 533096 Adani Power Ltd. 22497.96 0.15 1.00 3374.69 8.28
2 532981 Anu's Laboratories Ltd. 280.40 0.50 1.00 140.20 0.34
3 532935 Aries Agro Ltd. 67.95 0.50 1.00 33.97 0.08
4 533016 Austral Coke & Projects Ltd. 1489.22 0.30 1.00 446.77 1.10
5 532930 BGR Energy Systems Ltd. 2889.36 0.20 1.00 577.87 1.42
6 533006 Birla Cotsyn (India) Ltd. 78.01 0.70 1.00 54.60 0.13
7 532929 Brigade Enterprises Ltd. 1199.41 0.45 1.00 539.74 1.32
8 532931 Burnpur Cement Ltd. 55.17 0.55 1.00 30.35 0.07
9 532885 Central Bank of India 3942.40 0.20 1.00 788.48 1.94
10 532902 Consolidated Construction Cons. Ltd. 991.15 0.50 1.00 495.57 1.22
11 532903 Dhanus Technologies Ltd. 72.22 0.65 1.00 46.94 0.12
12 532927 Eclerx Services Ltd. 597.64 0.40 1.00 239.05 0.59
13 532922 Edelweiss Capital Ltd. 3215.38 0.65 1.00 2090.00 5.13
14 532920 Empee Distelleries Ltd. 256.81 0.30 1.00 77.04 0.19
15 532876 Everonn Systems Ltd. 527.70 0.60 1.00 316.62 0.78
16 532938 Future Capital Holding Ltd. 1653.00 0.20 1.00 330.60 0.81
17 532959 Gammon Infrastructure Projects Ltd. 1448.00 0.15 1.00 217.20 0.53
18 532980 Gokul Refoils & Solvent Ltd. 617.14 0.35 1.00 216.00 0.53
19 532951 GSS America Infotech Ltd. 229.84 0.45 1.00 103.43 0.25
20 532894 Indowind Energy Ltd. 212.69 0.35 1.00 74.44 0.18
21 532947 IRB Infrastructure Developers Ltd. 6235.15 0.30 1.00 1870.55 4.59
22 532881 IVR Prime Urban Developers Ltd. 469.90 0.25 1.00 117.47 0.29
23 532926 Jyothy Laboratories Ltd. 896.22 0.35 1.00 313.68 0.77
24 532889 K.P.R. Mill Ltd. 211.02 0.30 1.00 63.31 0.16
25 532942 KNR Constructions Ltd. 272.09 0.25 1.00 68.02 0.17
26 532924 Kolte-Patil Developers Ltd. 335.78 0.30 1.00 100.73 0.25
27 532901 Koutons Retail India Ltd. 1180.81 0.35 1.00 413.28 1.01
28 532997 KSK Energy Ventures Ltd. 6994.78 0.10 1.00 699.48 1.72
29 533088 Mahindra Holiday Resorts Ltd. 2719.78 0.15 1.00 407.97 1.00
30 532907 Maytas Infra Ltd. 499.35 0.60 1.00 299.61 0.74
31 532892 Motilal Oswal Financial Services Ltd. 2061.42 0.25 1.00 515.36 1.27
32 532921 Mundra Port and Special Economic Zone Ltd. 21163.86 0.20 1.00 4232.77 10.39
33 533015 Nu Tek India Ltd. 95.70 0.25 1.00 23.93 0.06
34 532880 Omaxe Ltd. 1831.13 0.15 1.00 274.67 0.67
35 532944 Onmobile Global Ltd. 3012.72 0.45 1.00 1355.72 3.33
36 532898 Power Grid Corporation of India Ltd.  45308.18 0.15 1.00 6796.23 16.68
37 532891 Puravankara Projects Ltd. 2592.04 0.15 1.00 388.81 0.95
38 533093 Raj Oil Mills Ltd. 323.37 0.30 1.00 97.01 0.24
39 532939 Reliance Power Ltd. 37485.95 0.20 1.00 7497.19 18.40
40 532915 Religare Enterprises Ltd. 2926.87 0.20 1.00 585.37 1.44
41 533017 Resurgere Mines & Minerals India Ltd. 246.31 0.20 1.00 49.26 0.12
42 532955 Rural Electrification Corporation Ltd. 16769.63 0.20 1.00 3353.93 8.23
43 532993 Sejal Architectural Glass Ltd. 110.74 0.50 1.00 55.37 0.14
44 532945 Shriram EPC Ltd. 770.48 0.20 1.00 154.10 0.38
45 532890 Take Solutions Ltd. 481.20 0.40 1.00 192.48 0.47
46 532966 Titagarh Wagons Ltd. 517.67 0.40 1.00 207.07 0.51
47 532928 Transformers & Rectifiers Ltd. 390.16 0.25 1.00 97.54 0.24
48 532883 Zylog Systems Ltd. 483.52 0.65 1.00 314.29 0.77
Total Market Capitalisation            40738.76  
Index Value on 21/08/2009            1901.67  
Courtesy : BSE