AMFI Rejig: Mazagon Dock, Solar Industries could be upgraded; Downgrade likely for RVNL, Swiggy

As many as 11 stocks, including Mazagon Dock Shipbuilders, Solar Industries India, Mankind Pharma, and Lupin, could migrate from the mid-cap to the large-cap category in the upcoming semi-annual stock categorisation by the Association of Mutual Funds in India (AMFI), scheduled for July, according to Nuvama Quantitative and Alternative Research.

Two major corporate demergers in calendar year 2025 are expected to directly qualify. Siemens Energy for the large-cap segment and ITC Hotels for the mid-cap segment. Meanwhile, the only direct listing expected to meet mid-cap criteria is Hexaware Technologies, based on Nuvama's analysis.

Other potential large-cap entrants include Indian Hotels Company, Max Healthcare Institute, Shree Cement, Apollo Hospitals Enterprise, Union Bank of India, and Jindal Steel and Power.

On the other hand, stocks that could move down from the large-cap to the mid-cap category include Rail Vikas Nigam Ltd (RVNL), Hero MotoCorp, Indian Overseas Bank, Cummins India, Swiggy, Polycab India, Bosch, Dabur India, and NTPC Green Energy.

In the mid-cap category, Nuvama identifies at least 11 potential entrants, including Godfrey Phillips India, Laurus Labs, Multi Commodity Exchange (MCX), as well as newly eligible Hexaware Technologies and ITC Hotels.

Stocks that may shift from mid-cap to small-cap include Ola Electric Mobility, Punjab & Sind Bank, Aditya Birla Fashion and Retail, Indraprastha Gas, Deepak Nitrite, Inventurus Knowledge Solutions, Syngene , The New India Assurance Company, Apar Industries, Endurance Technologies, Tata Technologies, and IRB Infrastructure Developers.

Based on current average market capitalisation, Nuvama estimates the large-cap cut-off at approximately ₹91,600 crore, down from ₹1 lakh crore in December 2024. The mid-cap threshold is expected to hover around ₹30,700 crore, compared to ₹33,200 crore in December 2024.

The evaluation period runs from January 1 to June 30, 2025, with the official list expected in the first week of July. The new categorisation will come into effect from August 1, 2025.

"The change in categorisation doesn't necessarily lead to incremental inflows or outflows. However, active mutual fund managers closely track the list while taking fresh or modified positions in stocks across different scheme categories," the brokerage said.

Nuvama also reiterated that there is no hard-and-fast rule that reclassification automatically results in fund flow changes.

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