According to the latest stock classification by the Association of Mutual Funds of India (AMFI), new stocks that go straight into the large-cap category are Life Insurance Company of India (LIC) and Adani Wilmer.

Shares in edible oil maker Adani Wilmar, part of the Adani Group led by Gautam Adani, have returned more than 118% since its stock market debut. Shares in state-owned insurance giant LIC have fallen about 20% since its listing on the stock exchange on May 17, 2022.

The list is compiled every six months, and the current list is valid from August 2022 to January 2023. Large-cap stocks have a market capitalisation of Rs 475 billion, while mid-cap stocks have a market capitalisation of Rs 164 billion.

Edelweiss Alternative & Quantitative Research released a pre-emptive analysis of changes in stock classifications in May, and AMFI’s official announcement matched the brokerage and research firm’s forecast.

New listings added directly to the mid-cap category in the AMFI list are Vedant Fashions and Delhivery. At the same time, Motherson Sumi Wiring is a spin-off from its parent company, Motherson Sumi Systems Ltd.

The remaining newly public companies debuted under the small-cap category, including AGS Transact Technologies, Uma Exports, Veranda Learning, Hariom Pipes, Campus Activewear, Rainbow Children’s Medicare, Prudent Corporate Advisory, Venus Pipes, Paradeep Phosphates and Ethos Ltd.

According to market regulator Securities and Exchange Board of India (SEBI), listed stocks must be strictly divided into baskets with clear large-cap, mid-cap and small-cap classifications. This is to ensure a consistent investment horizon for equity mutual fund schemes.

In addition, SEBI stipulates that AMFIs should prepare a list of stocks in this regard. Therefore, AMFI, in consultation with SEBI and stock exchanges, prepares a list of stocks classified according to the market capitalisation provided by BSE, NSE and MSEI.