New-age companies make it to Amfi's large-cap list, shows data

Strat-ups Zomato, PB Fintech, One97 Communications, and FSN E-Commerce Ventures have entered the large-cap category after the latest reclassification exercise by the Association of Mutual funds in India (Amfi).

This comes despite stocks such as PB Fintech (Policybazaar) and One 97 Communication (Paytm) trading below their issue price.

Others such as Mindtree, SRF, IRCTC, Tata Power, JSW Energy have been moved from mid-cap to large-cap category. Stocks that have been promoted to large-cap have done exceedingly well in the last one year and have generated returns in the 110-190 per cent range.

Market participants say the inclusion of these stocks into the large-cap category makes them more appealing to the equity fund managers. Currently, fund managers are permitted to invest up to 10 per cent of the scheme corpus in a single stock irrespective of its performance.

Meanwhile, companies such as Bandhan Bank, Bank of Baroda, Biocon, and NMDC have been moved from the large-cap category to mid-cap category.

These changes will be applicable from the February-July 2022 period. While newly-listed companies like Star Health and Allied Insurance, Aditya Birla Sun Life AMC, Devyani International have entered the mid-cap category.