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As per Edelweiss Alternative Research, which has populated potential changes to the AMFI marketcap categorization, multibagger stocks like Indian Energy Exchange (IEX), National Aluminium Company (Nalco), Happiest Minds Technologies, and Gujarat Fluorochemicals are among the stocks that could move from smallcaps to midcap category in AMFI review.

Prestige Estates Projects, KIOCL, and Central Bank of India could also be upgraded an per brokerage and research firm Edelweiss' initial prediction to the official list which will be released by AMFI in January 2022. The updated list, that will be announced by AMFI, will be valid from start of February till July 2022 end.

Shares of Nalco, which has integrated and diversified operations in mining, metal, and power, has given multibagger return this year so far as the stock is up over 125% in year-to-date terms. 

Multibagger stock IEX, premier electricity exchange in India, has rallied over 270% during the said period. Shares of chemical manufacturer Gujarat Fluoro and IT company Happiest Minds shares have skyrocketed more than 260% and 280% respectively in 2021 (YTD). 

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

Further, SEBI has also stipulated that AMFI shall prepare the list of stocks in this regard. Accordingly, AMFI in consultation with SEBI and stock exchanges, prepares the list of stocks with categorization based on the market capitalization provided by BSE, NSE and MSEI.

Meanwhile, midcap stocks like RBL Bank, Affle (India), Amara Raja Batteries, Indigo Paints, Vaibhav Global, Apollo Tyres, Suven Pharma, Zydus Wellness, Castrol India are among the ones that could be downgraded to the smallcap category, as per Edelweiss.

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