About 74 per cent of the recently listed stocks that hit the market through IPOs in the second half of last year had debuted in the small-cap category as per the new list of stock categorisation announced by the Association of Mutual Funds in India on Wednesday.
According to Edelweiss Alternative Research study, of the 43 IPOs that were launched between last July and December, 32 stocks have entered into small-cap while seven were categorised as mid-cap and four got listed as large-cap stock.
New age businesses such as Zomato, Nykaa, Paytm and PolicyBazaar that paved the way for successful exit of their existing investors entered the large-cap category.
The fresh listings that directly got added in mid-cap category were Star Health, Clean Science, Nuvoco Vistas, Aditya Birla AMC, GR Infraprojects, Aptus Value and Devyani International.
Migration to large-cap
Stocks that made entry into large-cap category from mid-cap include MindTree, SRF, IRCTC, Tata Power, Mphasis, Godrej Properties, Macrotech Developers (Lodha), Bharat Electronics and JSW Energy.
Some of the companies that got downgraded from large-cap to mid-cap were Bandhan Bank, Bosch, Cholamandalam Invest, P&G Hygiene, Aurobindo Pharma, NMDC, Lupin, Bank Of Baroda, Biocon, Colgate-Palmolive, Punjab National Bank, Honeywell Automation and YES Bank.
The market cap cut-off for large-cap was at ₹47,600 crore while that of mid-cap was at ₹16,200 crore.
Of the overall market cap, the percentage of top 100 large-cap stocks was lower at 68.8 per cent against 71.4 per cent in July review of AMFI due to widespread rally in the equity market in the better half of last year.
Market capitalisation of mid-cap stocks, which starts from 101 to 250, was a tad higher at 16.9 per cent against 16.27 per cent logged in the previous review.
The rally in small-cap stocks ensured that their contribution to the overall market cap increased to 14.3 per cent against 12.29 logged in the July review. Mutual funds have to recalibrate their scheme portfolio as per the new list announced by AMFI.