BSE IPO Share Price

The BSE IPO index tracks the performance of recently listed companies (IPOs) on the Bombay Stock Exchange.

It basically reflects how newly listed IPOs are performing post-listing, which is something many investors track out of curiosity and sometimes in search of an investment opportunity.

Unlike broad indices, this one is more time-based, meaning companies are included for a certain period (usually monthly) after listing.

The BSE IPO index follows a simple, time-based selection process, focused only on newly listed companies.

1. Step 1: Basic Eligibility

   
   1. Only companies listed through an IPO on the Bombay Stock Exchange are considered (follow-on public offers are not included).
   2. Must be a recent IPO listing
   3. Minimum ₹100 crore float-adjusted market capitalisation (based on issue price)

2. Step 2: Entry into the Index

   
   1. Stock is added on the 3rd day of listing
   2. Only if it meets the required market cap criteria

3. Step 3: Fixed Inclusion Period

   
   Each stock stays in the index for around 1 year from listing. After that, it is automatically removed.

4. Step 4: Minimum Stock Count Rule

   
   1. The index maintains at least 10 companies.
   2. If removing a stock drops the count below 10, its exit is delayed until a new IPO is added.

In simple terms, it is a rolling index where new IPOs keep coming in, and older ones move out. So with BSE IPO today's data, you're always looking at the latest set of listed companies.

The BSE IPO is calculated using a float-adjusted market capitalisation method, with a few practical caps.

1. Step 1: Calculate Free-Float Market Cap

   
   Only publicly available shares are considered (promoter holdings are excluded).

2. Step 2: Assign Weights

   
   
   • Stocks are weighted as per their free-float market cap.
   • No single stock can have more than 20% weight.

3. Step 3: Aggregate Index Value

   
   The combined value of all eligible IPO stocks forms the index level.

4. Step 4: Monthly Rebalancing

   
   Weights are updated every month to ensure new IPOs and price changes are reflected properly.

5. Step 5: Ongoing Changes

   
   
   • New IPOs are added regularly (post-listing).
   • Older ones are removed after ~1 year (exit happens on the Monday after the third Friday of that month).

Tracking the BSE IPO gives a quick sense of how new listings are behaving in the market.

• Focused on New Listings: Tracks only recent IPOs, not older established companies.
• Captures Early Performance Trends: Helps observe how stocks perform after the listing wave settles.
• Regularly Updated: To capture recent IPO trends, this BSE index is updated monthly to reflect the latest composition.
• Reflects Market Sentiment for IPOs: Gives a rough idea of investor appetite for new IPO issues.
• Easy to Track: With BSE IPO live updates available, performance is easy to follow.

With Anand Rathi's TradeMobi platform, invest in BSE indices easily in 5-simple steps.

1. Step 1: Open / Login to Your Account

   
   Start by logging into your account or opening a demat account and trading account.

2. Step 2: Explore IPO Opportunities

   
   Look for funds that track the BSE IPO live index.

3. Step 3: Choose Your Investment

   
   Select and invest based on your understanding and goals.

4. Step 4: Invest and Track

   
   Monitor performance and track BSE IPO live movements.

5. Step 5: Stay Updated

   
   Follow research insights and alerts of the BSE IPO live chart to track upcoming IPO and related trends regularly.

Introduced on 24th August, 2009, the BSE IPO index was built to specifically track the performance of newly listed companies, something traditional indices didn't capture well.

As IPO participation increased in India, there was a need to track how these stocks perform beyond listing day gains. The sole purpose was to provide visibility into the post-listing performance of IPOs.

Unlike static indices, this one keeps evolving with new listings and exits. It's like a moving basket of recent IPOs, showing how the newest companies are doing in the market.

Tracking BSE IPO today or even following BSE IPO share price alerts can give a sense of current IPO market trends, whether strong, weak, or mixed.