Latest news with #ShashankAgarwal
Economic Times
3 days ago
- Business
- Economic Times
Startup IPOs deliver only 36% long-term return for investors: Report
Investors in initial public offerings (IPOs) of new-age tech companies have earned just 36% average returns, and only 32% of those who invested after listing have made gains, according to a report by advisory firm Client Associates. Titled The New-Age IPO Performance Analysis, the report examined 25 new-age tech IPOs launched between May 2020 and June 2025 across sectors including fintech, logistics, consumer internet, and software-as-a-service (SaaS). It assessed investor returns at three stages, pre-IPO, IPO, and post-IPO, using the BSE 500 as a benchmark. Mixed outcomes Startups like Ixigo and Zaggle delivered strong pre-IPO returns of 89.21% and 62.47%, respectively, while Ola Electric posted a 60.13% loss in the same phase. Overall, pre-IPO investments generated average returns of 43%, outperforming IPO and post-IPO investments. 'This assessment tells you that most prices have been driven by frenzy rather than business fundamentals,' said Shashank Agarwal, associate director at Client Associates. 'Unless you're an institutional investor, most retail investors chase market noise.' While companies such as Zomato and PolicyBazaar have fared better, others including Paytm, Ola Electric, and Mobikwik have significantly underperformed. The report argued that hype and narrative, rather than strong fundamentals, have driven most retail participation. IPO wave In 2024 alone, 13 new-age tech companies went public, raising close to Rs 29,070 crore. The list includes Swiggy, Go Digit, TBO Tek, Awfis, Ola Electric, FirstCry, Ixigo, and Unicommerce. The surge in tech-led IPOs has been fuelled by digital adoption, favourable demographics, and strong capital inflows, a shift from earlier IPO waves dominated by industrial and BFSI compounded annual growth rate (CAGR) of companies listed on the Bombay Stock Exchange rose 121% between September 2021 and May 2025, compared with just 37% for those listed on the National Stock Exchange. Investors in BSE-listed shares earned 84% more annually than those holding NSE's unlisted shares over the past four years. Agarwal said BSE's listed status gives investors confidence, while NSE's IPO delays and regulatory challenges have made investors more cautious. Despite this, retail investors are actively buying unlisted shares of market infrastructure firms such as NSE and the National Securities Depository Limited (NSDL), even though these are illiquid and hard to trade. Unlisted vs listed returns Over the last four years, NSE's unlisted shares have returned 37%, while listed rival BSE surged 194%. Similarly, NSDL's unlisted shares gained 35% compared with a 69% return from listed competitor CDSL. The report concluded that while pre-IPO investments in select new-age companies have delivered strong returns, the IPO and post-IPO phases have been far less rewarding for most retail investors. It cautioned that chasing hype without assessing business fundamentals exposes investors to significant downside risk.
Time of India
3 days ago
- Business
- Time of India
Startup IPOs deliver only 36% long-term return for investors: Report
Investors in initial public offerings (IPOs) of new-age tech companies have earned just 36% average returns, and only 32% of those who invested after listing have made gains, according to a report by advisory firm Client The New-Age IPO Performance Analysis , the report examined 25 new-age tech IPOs launched between May 2020 and June 2025 across sectors including fintech, logistics, consumer internet, and software-as-a-service (SaaS). It assessed investor returns at three stages, pre-IPO, IPO, and post-IPO, using the BSE 500 as a like Ixigo and Zaggle delivered strong pre-IPO returns of 89.21% and 62.47%, respectively, while Ola Electric posted a 60.13% loss in the same phase. Overall, pre-IPO investments generated average returns of 43%, outperforming IPO and post-IPO investments.'This assessment tells you that most prices have been driven by frenzy rather than business fundamentals,' said Shashank Agarwal, associate director at Client Associates. 'Unless you're an institutional investor, most retail investors chase market noise.'While companies such as Zomato and PolicyBazaar have fared better, others including Paytm , Ola Electric, and Mobikwik have significantly underperformed. The report argued that hype and narrative, rather than strong fundamentals, have driven most retail 2024 alone, 13 new-age tech companies went public, raising close to Rs 29,070 list includes Swiggy , Go Digit, TBO Tek , Awfis, Ola Electric, FirstCry, Ixigo, and Unicommerce. The surge in tech-led IPOs has been fuelled by digital adoption, favourable demographics, and strong capital inflows, a shift from earlier IPO waves dominated by industrial and BFSI compounded annual growth rate (CAGR) of companies listed on the Bombay Stock Exchange rose 121% between September 2021 and May 2025, compared with just 37% for those listed on the National Stock Exchange. Investors in BSE-listed shares earned 84% more annually than those holding NSE's unlisted shares over the past four said BSE's listed status gives investors confidence, while NSE's IPO delays and regulatory challenges have made investors more cautious. Despite this, retail investors are actively buying unlisted shares of market infrastructure firms such as NSE and the National Securities Depository Limited ( NSDL ), even though these are illiquid and hard to the last four years, NSE's unlisted shares have returned 37%, while listed rival BSE surged 194%. Similarly, NSDL's unlisted shares gained 35% compared with a 69% return from listed competitor CDSL . The report concluded that while pre-IPO investments in select new-age companies have delivered strong returns, the IPO and post-IPO phases have been far less rewarding for most retail investors. It cautioned that chasing hype without assessing business fundamentals exposes investors to significant downside risk.
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Business Standard
07-08-2025
- Business
- Business Standard
Home loan EMI charged in advance? Can lenders do it, and how to contest it
If your home loan lender has deducted an EMI even before your actual repayment schedule started, you may be entitled to compensation, including interest on the advance amount. Recent regulatory updates and legal interpretations indicate that such advance deductions, unless fully disclosed and adjusted fairly, can be challenged. Advance EMI deductions Lenders are not supposed to deduct EMI before the due date, and doing so without the borrower's consent could amount to an unfair trade practice, according to Shashank Agarwal, founder, Legum Solis, a law firm. 'RBI has clearly frowned on this practice,' notes Bhargesh Ojha, partner at Chandhiok and Mahajan, a law firm. The central bank, through its Fair Practices Code (FPC) circular dated April 29, 2024, directed lenders to avoid prejudicial practices and ensure full transparency via a Key Fact Statement (KFS). Even if an EMI is deducted at the loan disbursement stage, a tactic used by some lenders, the borrower must receive a clear explanation, proper documentation, and interest credit for the advance amount, adds Vijendra Singh Shekhawat, chartered accountant & chief executive officer of Choice Finserv. Interest must be paid on advance EMI 'Any amount retained as advance EMI without adjusting it or crediting interest amounts to unjust enrichment,' says Tushar Kumar, advocate, Supreme Court of India. Housing finance companies, as per a recent NHB directive (July 2025), must now compensate borrowers with interest on such sums. Shravan Shetty, managing director, Primus Partners, concurs, adding that 'companies cannot retain advance EMIs without adjusting or recognising them, and must communicate clearly with borrowers.' How to check if you're affected Here's how to verify whether an advance EMI was wrongly deducted: Review your loan account statement and disbursement schedule Check if any EMI debit appears before your due date Look for entries in suspense or intermediary accounts Cross-check with the KFS or ask your lender for a detailed ledger Digital-savvy users can inspect their loan account via banking apps or net banking portals, adds Sarika Shetty, chief executive officer at RentenPe. How to file a complaint? If you find such deduction without interest adjustment: Raise a written complaint with your lender and request resolution Escalate to the lender's Nodal Officer if not resolved File a complaint under the RBI's Integrated Ombudsman Scheme For loans from housing finance companies, register a complaint on GRIDS portal As a last resort, approach Consumer Forum for compensation 'Borrowers are well within their rights to seek refunds and even compensation,' confirms Ojha, citing precedents where consumer courts ruled in favour of borrowers.
Finextra
01-07-2025
- Business
- Finextra
AI-led RegTech startup Zango raises $4.8 million
London-based Zango AI has raised $4.8 million to overhaul financial compliance systems with AI agents. 0 The funding round was led by Nexus Venture Partners, with addittional participation from South Park Commons, Richard Davies, CEO of Allica Bank, Alan Morgan, former head of Financial Services at McKinsey (EMEA), Mark Ransford, Notion Capital, No Label Ventures and Start Ventures. Already used by Novobanco in Portugal and UK and EU neobanks, including Monzo and Juni, Zango's regulation-aware AI agents continuously track regulatory updates, identify compliance gaps in real time, and keep firms audit-ready. The firm is training Large Language Models to transform compliance into a query-based operating systemm, answering questions like: 'I want to launch a lending product in [Y] market — what do I need to do?' Ritesh Singhania, co-founder of Zango, says: "Our AI agents are paired with humans-in-the-loop to ensure 100% accuracy. Peace of mind doesn't come from a tool; it comes from a result. That's why we win against consultants — because they don't just sell software, and neither do we.' Singhania previously founded ClearGlass, a pension compliance platform, and served as head of technology at Simplitium, which was acquired by Nasdaq. Fellow co-founder Shashank Agarwal co-founded Third Watch, an AI-powered fraud detection startup which was acquired by Razorpay, and led trust and compliance engineering at PhonePe, which is gearing up for India's largest IPO. The funds raised will be used to expand teams in London & Bengaluru along with building out the other product modules for an AI-native GRC. Zango also intends to expand into other verticals of financial services as well outside of banking to insurance and asset management.
Mint
11-06-2025
- Mint
Plan to marry abroad? Here's how to make it legal in India.
More Indians than ever before are choosing destination weddings or marrying abroad because of work, residency conditions or convenience. But are such weddings legally valid in India? The answer isn't straightforward. Just because you've had a lavish wedding in Italy or signed papers in New York doesn't mean Indian law automatically acknowledges your union, several legal experts told Mint. Recognition depends on your personal law and the manner in which the marriage was solemnised. Where to register the marriage The marriage of an Indian citizen in cases where the wedding took place outside India is valid back home when it is solemnised in either of these ways: in the foreign country under the Foreign Marriage Act, 1969 (FMA) or in India under the Special Marriage Act, 1954 (SMA). In simple terms, 'solemnised' means a religious or legal ceremony was conducted to make a marriage official. Also read: Marriage changes women's lives—men's, not so much. The data shows it. An Indian citizen is likely to marry outside India under one of three circumstances – in a destination wedding, if they are marrying a non-resident Indian (NRI) or a foreign citizen in their partner's country of residence, or if they are a resident of a foreign country and wish to register the marriage there. In all three cases, the marriage must be solemnised under the FMA or SMA for it to be legal in India. This is required irrespective of whether the couple had a traditional ceremony based on their religious customs in the foreign country, experts said. Shashank Agarwal, advocate and founder, Legum Solis, said, 'Section 15 of the Foreign Marriage Act, 1969 provides that the marriages between parties (one or both of whom is an Indian citizen) solemnised outside India in any foreign country will be good and valid in law in India. The only condition is that the marriage should be solemnised in compliance with the provisions of the FMA." 'Besides the ceremony, the registration of marriage and a certificate of marriage from the marriage officer in that foreign country is a must," he added. Registering a marriage under the FMA is fairly simple. Shaishavi Kadakia, partner at Cyril Amarchand Mangaldas, explained that it requires submitting forms, paying a fee, and having the marriage attested by three witnesses. 'For solemnisation under FMA, the prospective couple must appear before the marriage officer, who is a consular officer in a foreign country, with three witnesses and submit a 'notice of intended marriage', a fee, and a declaration confirming their age, citizenship and other relevant facts. The notice is then published both in India and the foreign country, and if no objections are received within 30 days, the marriage can be solemnised before the marriage officer in the presence of three witnesses," he said. As the FMA requires both partners to be physically present in the country to submit the notice at least 30 days before the wedding, it may not be viable for Indian citizens who simply want to marry outside India at a destination wedding. Also read | The split-up: How to protect your assets before and after marriage A destination wedding performed as per traditional customs but not solemnised under the FMA must be solemnised under the SMA in India to be valid. Indian laws recognise a marriage solemnised as per traditional customs only if it is performed in India. If the traditional ceremony took place abroad, the ceremony alone will not suffice. Mrunalini Deshmukh, a family and matrimonial lawyer, said, 'Say, under the Hindu Marriage Act, the law requires that the marriage be solemnised within the territorial jurisdiction where it is being registered. So, if the marriage was performed abroad—even if all the Hindu rituals were followed—it may not be possible to register it under the Hindu Marriage Act in India." In such a case, unless the couple once again performs Hindu rituals in India, the marriage should be registered under SMA and not the Hindu Marriage Act. However, in reality, most couples present documentation to the registrar suggesting that the wedding took place in India just to register the marriage under their personal laws, a lawyer who did not wish to be named told Mint. 'This is common practice, though not strictly legal." When to register under SMA The SMA allows registration of marriages that weren't necessarily solemnised in India, and doesn't require religious ceremonies, said Deshmukh. However, the couple has to go through the process of issuing a public notice and being physically present in India to complete it. It's therefore not preferred by NRIs, who instead get the marriage solemnised under the FMA in the country of their residence. Tushar Kumar, an advocate at the Supreme Court of India, said while a foreign marriage solemnised under the FMA need not be registered in India to be considered legally valid, parties may still choose to register it under Indian law for evidentiary or administrative convenience. 'If the parties reside in India, they may apply for registration of their foreign marriage under Chapter III of the SMA," he said. 'The Indian registration acts only as a domestic acknowledgment and formal entry into Indian records. It does not replace or nullify the foreign registration." Also read: Weddings spark a bill shock, from venues to flowers This SMA registration process involves giving a formal notice to the local marriage registrar, followed by the publication of the notice for a 30-day objection period. Upon completion of verification procedures and satisfaction of all legal criteria, the marriage is officially registered. Deshmukh recounted cases in which couples married in a foreign country such as Italy or the US and later struggled to get it recognised or registered back in India. 'Some Indian registrars even refuse to register marriages solemnised abroad unless they fall under the FMA or the SMA," she said. What about divorce and alimony? Since marriages involving Indian citizens registered in a foreign country are considered valid in India, Indian alimony laws would also apply if such a couple were to file for divorce before an Indian court. Agarwal said the laws definitely apply if the couple resided in India. 'If both the parties are living outside India, no petition for divorce or any of the Indian alimony laws can apply. However, if either of them is residing in India then the divorce petition may be filed, depending on the facts of the case, before an Indian court and the Indian alimony laws can apply," he said. Also read | Lights, camera, reels: How your wedding can be the ticket to social media virality Deshmukh strongly advised couples who married outside India to register their marriage in India, even if they have a valid foreign certificate. 'Registration gives you a signed and sealed document from Indian authorities. That's a strong legal shield," she said. Such registration plays a vital role during potential divorce proceedings, custody battles, alimony claims, property disputes, and even visa and immigration processes. 'It gives you legal clarity and proof. Otherwise, you may have to prove the existence of your marriage all over again if it's ever challenged," Deshmukh added.
