BSE launches an IPO index

By SiliconIndia   |   Tuesday, August 25, 2009
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Bangalore: Bombay Stock Exchange (BSE) launched an initial public offering (IPO) index on Monday to track the value of stocks for two years after listing. IPO index will track the companies which have a free-float market capitalization of at least Rs.100 crore on its first day of listing. Currently the index has 48 stocks. In its statement BSE said, "The index will have at least 10 stocks at any point of time with the maximum weighting for a stock capped at 20 percent. The base date of the index is May 3, 2004 and the base value was set at 1000 points." BSE has launched this index after seeing the performance of new share offerings, which are making a comeback after the gap of 18 months, helped by a stock market rally. The benchmark 30 share index has gained nearly 60 percent so far this year. Power utilities Adani Power and NHPC (National Hydro Power Corporation) have raised a combined $1.9 billion since late July in IPOs and Oil India is expected to launch a new share offering in September. According to the analysts, the BSE is launching new products to regain market share from the National Stock Exchange, which handles almost twice the volume and is the world's largest single stock futures market.
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