This newly listed stock is likely to enter the midcap universe AMFI Review

 

Piramal Pharma listed its shares on BSE and NSE in October this year

A newly listed stock, Piramal Pharma, is likely to enter the midcap universe in the upcoming AMFI half-yearly review, brokerage and research firm Ambit said in its note on rejig expectations.

“In the upcoming AMFI half-yearly review, we will list 6 new large-cap stocks (midcap to large-cap upgrade), 13 new mid-cap stocks (6 small-cap to mid-cap upgrade, 6 large-cap to mid-cap upgrade). -cap downgrade, and 1 new listing), and 7 new small-caps (downgraded from midcap). This appears to be in line with historical trends. The cut-off for the large-cap and mid-cap universe is ₹487 billion and ₹166 billion, respectively, based on average market capitalization as at end-June 2022."

As per capital markets regulator Securities and Exchange Board of India (SEBI), listed stocks should be strictly classified into baskets with a well-defined classification of largecap, midcap and smallcap stocks. This is to ensure uniformity with respect to the investment world for equity mutual fund schemes.

Further, SEBI has also prescribed that the Association of Mutual Funds of India (AMFI) shall prepare the list of shares in this regard. Accordingly, AMFI, in consultation with SEBI and stock exchanges, prepares list of stocks with classification based on market capitalization as provided by BSE, NSE and MSEI. SEBI's circular on Classification and Rationalization of Mutual Fund Schemes defines large, mid and smallcap stocks based on 6 month average of full market cap.

Piramal Pharma listed its shares on BSE and National Stock Exchange (NSE) in October this year. In June 2020, Carlyle Group Inc infused equity capital in Piramal Pharma Limited (PPL) for 20% stake. Accordingly, the pharmaceuticals business was demerged from Piramal Enterprises Limited (PEL).

In October 2021, PEL's board of directors approved the demerger and simplification of corporate structure of the pharmaceuticals business to transform PEL from a multi-sectoral conglomerate to two separate sector-focused listed entities in financial services and pharmaceuticals.


PPL comprises Piramal Pharma Solutions (PPS), an Integrated Contract Development and Manufacturing Organization (CDMO); Piramal Critical Care (PCC), a complex hospital generics business; and India consumer healthcare business selling over-the-counter (OTC) products.