YES Bank stages a comeback as large-cap

Suresh P Iyengar Mumbai | Updated on January 05, 2021

AMFI’s latest reclassification, which MFs must follow for investments, features Adani Enterprises and 3 others in top m-cap club


Once a troubled lender, YES Bank, along with Adani Enterprises, has been reclassified as large-cap stocks by the Association of Mutual Funds in India (AMFI). The reclassification is as per SEBI norms on stock classification based on which mutual funds (MFs) make their investments.

Other stocks that have been reclassified from mid- to large-cap include PI Industries, Jubilant Food and Hindustan Aeronautical.

In the last six months, the average market capitalisation of YES Bank was ₹34,868 crore as the shares rallied sharply to touch a high of ₹27 on the back of revival in economy, while that of Adani Enterprises averaged about ₹33,300 crore.

The YES Bank saga

Last March, YES Bank, which was bailed out by SBI, was dropped from benchmark indices Nifty, banking index Nifty Bank and other Nifty indices. Its current market cap stands at ₹45,099 crore on the BSE.

The entry of the bank into large-cap is a big come back that could attract some investment from mutual funds.

AMFI reclassifies stocks based on their market capitalisation every six months. The top 100 stocks are classified as large-cap stocks and those in the 101 to 250 bracket are are termed as mid-cap stocks. Companies below 251 are termed as small-cap stocks.

The cut-off for top 100 market cap stocks was that of Hindustan Aeronautical at ₹28,897 crore. Similarly, the cut-off for mid-cap was ₹8,389 crore of Persistent Systems.

From large-cap to mid-caps

Some of the stocks that slipped from being large-cap to mid-cap include Concor, NMDC, MRF, United Breweries, GIC of India, Bank of Baroda and Max Health. A few stocks that have been upgraded from small- to mid-cap include Laurus Labs, Indiamart, Dixon Tech, Navin Fluorine, Astrazeneca Pharma, Deepak Nitrite, Bombay Burmah, Suven Pharma, P&G Health, Granules Indiaand Persistent System.

AMFI has also reclassified Indiabulls Housing Finance, Kajaria, Apollo Tyres, TTK Prestige, Chola Finance, CESC, SKF India, JM Financial, V-Guard, PVR, Symphony and Future Retail as small-cap stocks.


AAUM jumps 8%

Meanwhile, the average asset under management of mutual funds in the December quarter increased to 8 per cent to ₹29.71 lakh crore against ₹27.6 lakh crore in the September quarter, according to the AMFI data.

Published on January 05, 2021

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