LIC, Adani Wilmar shares likely to get large cap tag in upcoming AMFI review, Delhi very new mid cap entrant


LIC of India and Adani Wilmar shares are likely to be new entrants in the large-cap equity category in the upcoming review by AMFI (Association of Mutual Funds in India), IIFL Securities said in a report. Currently, the total market capitalization of LIC stands at Rs 4.22 lakh crore. However, at the offer price of Rs 949, the market capitalization of LIC was Rs 6.02 lakh crore. According to BSE data, the insurer is the seventh most valuable company by market capitalization, followed by SBI (State Bank of India) with a market capitalization of Rs 4.02 lakh crore.

AMFI is expected to publish the new categorization in the first week of July 2022. IIFL Securities said the stocks were sorted based on current allocation in the respective category and weight in the benchmark.

Likely to transition from mid-cap to large-cap

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IIFL Alternative Research picked five stocks that could be reclassified as large caps from mid caps. These include Adani Power, which has a market capitalization of Rs 1 lakh crore, and Cholamandalam Investment and Finance Company, which has a market capitalization of Rs 52,827 crore. Furthermore, Bank of Baroda with a market cap of Rs 50,809 crore along with Bandhan Bank (market cap of Rs 45,416 crore) and Hindustan Aeronautics (mcap of Rs 59,980 crore) are also expected to make a difference.

Likely to transition from mid-cap to large-cap

Shares that could move from the large-cap category to the mid-cap category include PB Fintech (PolicyBazaar), which has a market capitalization of Rs 27,723 crore. PB Fintech share price has so far fallen 35.27% in 2022. IDBI Bank, Zydus Lifesciences, Jubilant FoodWorks, Steel Authority of India (SAIL), Godrej Properties and HDFC AMC are also expected to be brought back to the mid-cap category. All of the stocks mentioned above have fallen by up to 38% so far this year. IIFL Alternative Research also expects Delhivery, newly listed Vedant Fashions (Manyavar) and Motherson Sumi Wiring to enter the mid-cap basket.

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From small to mid cap

Tata Teleservices (Maharashtra) is among the stocks that are currently classified as small caps but could be moved to the mid cap basket. Others on the list include SKF India, KPR Mill, Tanla Platforms, Poonawala Fincorp, Phoenix Mills and Chambal Fertilisers.

From mid cap to small cap

13 stocks have been identified by IIFL Alternative Research that could potentially be downgraded to the small cap category from the current mid cap basket. Some of them are Gillette India, Sanofi India, Aptus Value Housing Finance, Alkyl Amines Chemicals, Nuvoco Vistas, UCO Bank, Aditya Birla AMC, Natco Pharma, Happiest Minds, Ajanta Pharma, GR Infraprojects among others. Additionally, Campus Activewear, Rainbow Children’s Medicare, Eureka TAUT, eMudhra, Aether Industries, AGS Transact technologies, Paradeep Phosphates, Prudent Corporate Advisors, Ethos, Veranda Learnings, and Venus Pipes are among the newly listed companies likely to get the petty categorization. ceilings.

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The list of stocks in the large, mid and small cap basket is prepared by AMFI on a semi-annual basis in consultation with SEBI, BSE and NSE. Large-cap companies are the top 100 publicly traded companies, while mid-cap companies include the 101st to 250th companies by market capitalization. The others are small caps. It is important to note that the categorization or recategorization of stocks does not necessarily mean an influx of funds.



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