On January 4, 2024, the Association of Mutual Funds of India (AMFI) announced the new market categorisation list for H1 CY24. The largecap threshold was increased from Rs 49,700 crores to Rs 67,000 crores in June 2023 and the midcap cut-off has risen to Rs 22,000 crores from Rs 17,400 crores.
AMFI classifies largecap companies as those ranked from 1-100 in market capitalisation, midcap companies as those ranked from 101-250, and smallcap companies as those ranked from 251 onwards.
Listed below are 5 PSU stocks that were upgraded by AMFI from mid-cap to large-cap:
REC Ltd
With a market capitalisation of Rs. 1,12,952, REC Ltd is a Central Public Sector Undertaking under the Ministry of Power involved in financing projects in the complete power sector value chain from generation to distribution. The shares have delivered a multibagger return of 246 percent to its investors in one year.
Indian Railway Finance Corporation Ltd
With a market capitalisation of Rs. 1,32,083 crores, IRFC is a funding arm of the Indian Railways for mobilizing funds from domestic and overseas Capital Markets. IRFC is a Mini Ratna I and Schedule A Public Sector Enterprise under the admin control of the Ministry of Railways, Government of India. The shares have delivered a multibagger return of 206 percent to its investors in one year.
Power Finance Corporation Ltd
With a market capitalisation of Rs. 1,31,674 crores, Power Finance Corporation Limited is a Systemically Important Non-Deposit taking NBFC registered with the RBI as an Infrastructure Finance Company. It is engaged in extending financial assistance to the Indian power sector. The shares have delivered a multibagger return of 218 percent to its investors in one year.
The Government of India has awarded the company “Maharatna” status in October 2021, which will provide the company with greater financial and operational autonomy.
Union Bank of India Ltd
With a market capitalisation of Rs. 90,802 crores, Union Bank of India is one of the leading public sector banks of the country which is engaged in the Business of Banking Services, Government Business, Merchant Banking, Agency Business Insurance, Mutual Funds, Wealth Management etc. The banking stocks delivered more than 50 percent to its shareholders in one year.
The bank has a customer base of more than 15 crore customers after the merger with Andhra and Corporation Bank in 2020. As of March 2023, the banking company has more than 8,500 domestic branches, with more than 10,00 ATMs which are spread across the country.
Indian Overseas Bank Ltd
With a market capitalisation of Rs. 81,621 crores, Indian Overseas Bank (IOB) is an Indian public sector bank based in Chennai founded in 1937 by Chidambaram Chettyar. It was one of the 14 major banks that were nationalized in 1969. The shares have delivered more than 40 percent to its investors in one year.
As of March 2023, the bank has 3,220 Branches, 3,477 ATMs and 3,190 Business Correspondents providing extended reach to customers.
Written By Vaibhav Patil
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