Major Stock Reclassification Ahead by AMFI: Mazagon Dock, Solar Industries May Enter Large-Cap; Swiggy, RVNL Face Possible Downgrade

Mumbai, 30 June 2025: A significant reshuffling of stock classifications is anticipated as the Association of Mutual Funds in India (AMFI) prepares for its biannual review in July. According to a report by Nuvama Quantitative and Alternative Research, up to 11 companies currently listed as mid-caps may be elevated to the large-cap segment. This includes notable names such as Mazagon Dock Shipbuilders, Solar Industries India, Mankind Pharma, and Lupin, reflecting robust market performance and rising market capitalisation.

Corporate Demergers Open Doors for Direct Category Qualification

Two major corporate demergers in 2025 have set the stage for immediate categorisation shifts. Siemens Energy, following its demerger, is likely to secure a position in the large-cap category, while ITC Hotels is expected to qualify directly for the mid-cap segment. These movements underscore how structural changes within companies can impact market classification.

More Big Names May Climb to Large-Cap Status

Beyond the top four expected upgrades, seven additional firms may join the large-cap club:

• Indian Hotels Company
• Max Healthcare Institute
• Shree Cement
• Apollo Hospitals Enterprise
• Union Bank of India
• Jindal Steel and Power

This shift could enhance their visibility and institutional interest in the months ahead.

High-Profile Downgrades Could Reshape the Mid-Cap Landscape

In contrast, several well-established large-cap stocks may be reclassified to mid-cap based on their average market capitalisation during the evaluation window. The following companies are under review for a potential downgrade:

• Rail Vikas Nigam Ltd (RVNL)
• Hero MotoCorp
• Indian Overseas Bank
• Cummins India
• Swiggy
• Polycab India
• Bosch
• Dabur India
• NTPC Green Energy

Such changes may lead to adjustments in investment strategies for institutional portfolios.

New Mid-Cap Contenders Join the Fray While Others Face Downgrade to Small-Cap

On the mid-cap front, new qualifiers include:

• Godfrey Phillips India
• Laurus Labs
• MCX
• Hexaware Technologies
• ITC Hotels

Meanwhile, several stocks currently in the mid-cap segment may move down to small-cap, based on their market value trends:

• Ola Electric Mobility
• Punjab & Sind Bank
• Aditya Birla Fashion and Retail
• Indraprastha Gas
• Deepak Nitrite
• Inventurus Knowledge Solutions
• Syngene International
• The New India Assurance Company
• Apar Industries
• Endurance Technologies
• Tata Technologies
• IRB Infrastructure Developers

These reclassifications reflect the dynamic nature of market capitalisation within a six-month review cycle.

Updated Market Capitalisation Thresholds Define New Boundaries

The cut-off for large-cap classification has been revised to approximately ₹91,600 crore, down from ₹1 lakh crore in December 2024. For mid-caps, the threshold is around ₹30,700 crore, compared to the earlier ₹33,200 crore. The review considers the average market capitalisation between 1 January and 30 June 2025, with the revised list expected in early July and coming into effect from 1 August 2025.

Fund Managers Monitor Categorisation, But Flows May Not Follow Immediately

Although these changes in classification do not automatically lead to capital inflows or outflows, mutual fund managers actively track these developments for strategic realignment. As highlighted by Nuvama, reclassification serves as a guidepost for portfolio adjustments but does not guarantee corresponding fund movements.

This upcoming AMFI reclassification could reshape the investment landscape, offering new opportunities and challenges for both institutional and retail investors in the months ahead.

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