Newly listed stocks set to shake up AMFI rejig; Groww, Lenskart among likely midcap entrants

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Several newly listed companies are poised to enter the largecap, midcap and smallcap segments in the upcoming AMFI half-yearly categorisation, potentially reshaping portfolio allocations for mutual funds. According to market experts, three freshly listed firms are likely contenders for the largecap basket, while five could find space in the midcap segment and seven may be slotted into the smallcap universe.

Tata Capital, LG Electronics India and the recently demerged Tata Motors Commercial Vehicles are expected to make their way into the largecap segment.

The review period for AMFI’s half-yearly reclassification closes on December 31, with the updated list scheduled for publication in the first week of January. Mutual funds are given one month thereafter to realign their portfolios based on the revised categorisation.

In the midcap segment, newly listed platforms such as Groww and Lenskart Solutions, alongside HDB Financial Services, Knowledge Realty Trust and Anthem Biosciences, are seen as likely entrants.

Meanwhile, Pine Labs, NSDL, Urban Company, JSW Cement, Aditya Infotech, Travel Food Services and Jain Resources Recycling are expected to be included in the smallcap segment.

The upcoming classification carries significant implications for equity schemes. Largecap funds are mandated to invest at least 80 percent of their assets in largecap stocks. Large and midcap funds must allocate a minimum 35 percent each to the two categories.

Midcap funds are required to hold at least 65 percent in midcap stocks, while smallcap funds must maintain a minimum 65 percent allocation to smallcap names. Flexi-cap funds remain the only category free to invest across market capitalisations.

Beyond newly listed names, several existing stocks may also shift categories. Muthoot Finance, HDFC Asset Management, Canara Bank, Bosch, Polycab India, Cummins India and Hero MotoCorp could migrate from the midcap to the largecap segment, experts said.

Among smallcaps, Endurance Technologies, Poonawalla Fincorp and Apar Industries may move up into the midcap basket in the upcoming reshuffle, experts added.

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