NSE LAUNCHES NIFTY IPO INDEX

NSE Indices, a subsidiary of the National Stock Exchange of India (NSE), launched a new index to track the performance of recently listed companies. The Nifty IPO Index will specifically monitor the last 100 Initial Public Offerings (IPOs) on the NSE`s main board.

The weight of each company in the index will be based on its free-float market capitalization, with a cap of 10% to prevent any single stock from dominating the index. The index will be reviewed and rebalanced on a quarterly basis to reflect changes in the market.

This new index is expected to serve as a valuable tool for investors and financial institutions. Asset managers can use it as a benchmark to compare the performance of their IPO-focused investments. Additionally, the Nifty IPO Index could serve as a reference point for passive investment products like Exchange Traded Funds (ETFs), index funds, and structured products.

The Nifty IPO Index has a base date of 2 January 2017, with a starting value of 1000. Since its inception, the index has delivered a Compound Annual Growth Rate (CAGR) of 11.29%. It has shown decent performance in recent years, with a CAGR of 14.27% over the past five years and an impressive 41.36% in the last year.

The top three companies within the Nifty IPO Index by weightage are Mankind Pharma (at 9.05%), Indian Renewable Energy Development Agency (at 5.90%), and Global Health (at 5.02%).

Powered by Capital Market - Live News