Sources said the top mutual funds and large domestic insurers are seeking valuations 30-40% below even the reduced IPO valuation of $4-5 billion, sending the bankers and one of Zepto's prominent investors scrambling to persuade money managers to meet the company mid-way.
SynopsisThe asset managers, among the biggest investors in recent IPOs, have told Bengaluru-based Zepto's representatives in recent discussions that they would not be comfortable subscribing to the issue even at the lower valuation being considered by the company, three people familiar with the matter told ET.ReutersFund managers are also wary of agreeing to higher valuations following the post-listing share price performance of some of the new-age businessesMumbai: Top domestic mutual funds have pushed back against the valuations sought by quick commerce startup Zepto for its proposed initial public offering (IPO), multiple people told ET, potentially complicating the company's plans for an early launch of its much-awaited issue.The asset managers, among the biggest investors in recent IPOs, have told Bengaluru-based Zepto's representatives in recent discussions that they would not be comfortable subscribing to the issue even at the lower valuation being considered by the company, three people familiar with the matter told ET.Zepto is said to have offered to cut its IPO valuation expectations to around $4-5 billion, below the peak valuation of $7 billion in October 2025, when the company secured a $450-million funding from US pension fund CalPERS.Sources said the top mutual funds and large domestic insurers are seeking valuations 30-40% below even the reduced IPO valuation of $4-5 billion, sending the bankers and one of Zepto's prominent investors scrambling to persuade money managers to meet the company mid-way. They have also stepped up efforts to line up support from a wider section of deep-pocketed High Networth Investors (HNIs) and large family offices.AgenciesMutual funds and insurers want valuation 30–40% below firm’s $4–5 billion targetAn email query to Zepto went unanswered until the publication of this report.Zepto is aiming to launch its IPO of up to ₹8,010 crore over the next two weeks. Sources said the company hopes to conclude negotiations with the asset managers by Tuesday, though mutual funds have yet to agree on its offer."Most of the large mutual funds are yet to confirm their participation at least till the weekend because of serious differences over valuations," said one of the people in the know on condition of anonymity.The participation of the domestic funds and insurers is considered crucial for the success of the IPO as these cash-flush institutions have been the largest participants in anchor books and pre-IPO funding rounds in recent share sales. Their dominant presence has also given them an upper hand in share sale negotiations with companies with some of the top funds even having a significant say in IPO pricings."What we are saying is if you can get the participation of the majority of the other big funds, we will also look into it again," said a top official with a large mutual fund, who did not want to be named because of the sensitive nature of the discussions.Fund managers said Zepto wanted to benchmark its IPO valuation against listed rivals Eternal and Swiggy. Investors, however, did not buy the logic because Zepto lacks a food delivery business, which forms a key part of both companies' operations and valuations. Zepto operates only in the ultra-competitive quick commerce market spanning groceries, electronics and other everyday items.Fund managers are also wary of agreeing to higher valuations following the post-listing share price performance of some of the new-age businesses. For instance, Swiggy, which listed in November 2024, is still trading below its IPO price. The stock is at ₹251.50, about 35% below the IPO price of ₹390 apiece. In some of the new-age company issuances in the past, mutual funds have been slammed for subscribing to these IPOs at peak valuations.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alert
Markets regulator Sebi and the mutual fund industry have introduced measures to simplify the transmission process for mutual fund investments, making it easier for nominees and surviving joint holders to claim the proceeds after the death of an investor.WHAT DOES TRANSMISSION OF MUTUAL FUND UNITS MEAN? Transmission of mutual fund units is the process through which units held by a deceased investor are transferred to the nominee, surviving joint holder or legal heir. The process is relatively straightforward if there are joint holders or valid nominees. While mutual funds broadly follow a common transmission process, there may be minor variations in documentation and formats across fund houses. Upon receiving the required documents, fund houses typically complete the transmission within 5-15 working days.WHAT WAS THE TRIGGER TO STREAMLINE THE TRANSMISSION PROCESS?Recent reports highlighted the administrative hurdles faced by families while claiming mutual fund investments after the death of a unit holder. To make the process simpler, mutual fund industry body AMFI has introduced a few measures. Where there is a mismatch in the recorded address of the deceased investor, asset management companies (AMCs) will now rely on the latest available address, only if it is backed by valid documents. Fund houses will also adopt a harmonised framework to deal with name and signature mismatches. In the event of a name mismatch, claimants may submit self-certified identity documents such as Aadhaar or Passport. For signature mismatches, registrars and transfer agents (RTAs) will follow the prescribed procedures based on the nature of the discrepancy.WHAT IS THE PROCESS FOR TRANSMISSION OF MUTUAL FUND UNITS? Mutual fund units are typically held either in a single name with a nominee registered or jointly with one or more investors. The transmission process depends on the pattern of holding. In the case of jointly held units, if the first holder dies, the units are transmitted to the surviving joint holder, who then become the primary holder. Where the investment is held in a single name, the units are transmitted to the registered nominee. The surviving joint holder or nominee must submit a request for transmission to the fund house, along with the original or a notarised copy of the death certificate and the relevant bank account details. If the nominee is not KYC-compliant, the KYC process must be completed before the transmission is processed. Once the transmission is completed, the nominee may either continue to hold the units or redeem them.WHAT HAPPENS IF THE INVESTOR DID NOT REGISTER A NOMINEE OR HAD NOMINATED MORE THAN ONE PERSON? If there are no joint holders or registered nominees, the units are transmitted to the legal heir upon submission of the prescribed legal documents required by the fund house. Where there is more than one nominee, the units are transmitted in the proportions specified by the deceased investor in the nomination form.
Delhi's iconic Red Fort complex has been closed to the public from July 15 till the 80th Independence Day celebrations on August 15, an official order stated.Visitors enjoy the pleasant weather at the Red Fort after rainfall brought down temperatures across the Delhi-NCR region, in New Delhi, India, on Sunday, May 31, 2026.(Hindustan Times)Delhi's iconic Red Fort complex has been closed to the public from July 15 till the 80th Independence Day celebrations on August 15, an official order stated.The order, according to PTI, was issued by the Archaeological Survey of India (ASI) in view of the ongoing preparations for the Independence Day celebrations at the complex."In exercise of the powers conferred under Rule 5 of the Ancient Monuments and Archaeological Sites and Remains Rules, 1959, it is hereby directed that the Red Fort shall remain closed for the public and general visitors from 15th July, 2026, to 15th August 2026, till the end of Independence Day celebrations, 2026," read the order dated July 9.A senior ASI official told PTI on Wednesday that such orders are issued every year ahead of Independence Day.The Red Fort, a UNESCO World Heritage site, has been the venue of the country's Independence Day celebrations since August 15, 1947, when India became a free dominion, throwing off the yoke of British colonial rule.On August 15, only those with passes issued by the government are authorised to enter the Red Fort area to attend the celebrations, which are held amid heightened security.Security beefed up at Red Fort after bomb threat callEarlier on July 11, the Delhi Police beefed up security at the Red Fort on Saturday after receiving information about a bomb threat, sources told PTI.However, after an extensive search of the premises, the threat was declared a hoax, they said.The threat call was made to the Mumbai Police control room, with the caller claiming that the iconic monument in Delhi would be blown up. Mumbai Police immediately shared the information with the Delhi Police control room, which alerted the district police, sources said.Following the alert, security was tightened in and around the Red Fort, and a thorough search of the monument and its surrounding areas was carried out, they said.After an extensive search, no suspicious object was found, and the threat was declared a hoax, they added.About the AuthorLivemintFor about a decade, Livemint—News Desk has been a credible source for authentic and timely news, and well-researched analysis on national news, business, personal finance, corporates, politics and geopolitics. We bring the latest updates on all the listed companies on BSE and NSE, startups, mutual funds, Union ministries, geopolitics, and untapped human interest stories from around the world, helping our readers to stay informed on the latest developments around the globe. Our Coverage Areas 1. Companies: Comprehensive news and analysis on listed and unlisted companies, corporate announcements, corporate chatter, C-suite, business trends, hiring alerts, layoffs, work-life balance, world's top billionaires and richest and more. 2. Personal finance: Insights into mutual funds, small savings schemes like - PPF, SSY, post office savings scheme, stock to watch, personal loans, credit cards, top bank FDs, real estate, income tax and more. 3. Politics: Comprehensive coverage of general elections, state elections and bypolls, Lok Sabha, Vidhan Sabha, Parliament, PMO, PIB, finance ministry, home ministry, among other union ministries and government departments. 4. National News: From metro cities like Delhi, Mumbai, and e to untapped stories from rural India, we cover human interest, health, education, crime and courts, and law and order, among other areas of public interest. 5. Economy: In-depth analysis of India's macro and micro-economic indicators like- GDP, inflation, forex, fiscal deficit, current account deficit, interest rate cycle, economic recovery, RBI circulars, indirect taxes, GST, Insolvency
com SBI Funds IPO anchor book draws Capital Group, BlackRock, Goldman, GIC BFSI News
Mumbai: The Securities and Exchange Board of India (Sebi) Friday issued revised norms for intraday borrowing by mutual funds, allowing asset managers to temporarily borrow during the trading day to bridge liquidity mismatches caused by differences in settlement timings.The new rule will come into effect from September 1, 2026.The regulator said mutual funds can avail intraday borrowings to meet unit holder payouts, including redemptions, income distribution cum capital withdrawal (IDCW) and interest payments, make pay-ins for investments, meet mark-to-market obligations and foreign exchange settlements, and repay existing borrowings.Sebi said the quantum of borrowing will be linked to receivables expected during the day.
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