Latest news with #JayKothari
Mint
a day ago
- Business
- Mint
Financial distributors turn to GIFT City for outbound funds. But few can enter.
Indian investment distributors are increasingly turning to GIFT City to tap into offshore fund offerings, as demand for global equity exposure surges among retail and high-net-worth investors. But here, too, the options are limited. With the traditional route of accessing international markets via domestic mutual funds largely shut due to regulatory caps, distributors—specifically, mutual fund distributors and independent financial advisers—are eyeing GIFT City-based outbound funds as a viable alternative. This bottleneck with the mutual fund route, however, has led to inflated premiums on older global exchange traded fund offerings, leaving investors with few options for diversification. GIFT City, with its status as an international finance hub and relaxed regulatory environment, is emerging as a workaround, which could potentially open a new route for Indian investors seeking to diversify their portfolios with global exposure. 'There is definitely an appetite from people wanting to invest globally," said Vaibhav Shah, head of products, business strategy and international business, at Mirae Asset Investment Managers (India). 'When we say we have an outbound fund, there is interest from distributors to sell the product, and from the investors to buy it." Mirae Asset Global Allocation Fund IFSC, which opened for subscription in April, invests in exchange traded funds tracking global indices in sectors such as artificial intelligence and semiconductors. Jay Kothari, senior vice-president and global head of international business at DSP Mutual Fund, said several clients already invest directly in outbound funds and distributors don't want to miss out on tapping into the growing demand for global equity investing. DSP Asset Managers opened India's first retail-focused offshore mutual fund at GIFT City in June. The Global Equity Fund allows Indian residents to invest as little as $5,000 (about ₹4.3 lakh) in a diversified basket of global stocks without relying on offshore brokerages, feeder funds, or cumbersome tax filings. A cumbersome alternative Indian investors had the option of investing in global equities through mutual funds. RBI, however, has a $7 billion limit on the total overseas investments of mutual funds, with a sub-limit of $1 billion ceiling specifically for foreign exchange traded funds. (Such ETFs own a collection of global stocks and trade on a stock exchange.) RBI's limits were breached around 3 years ago, effectively halting fresh mutual fund investments in global equities. Investments into fund-of-funds, too, have stopped. However, one can invest in ETFs, but since there are only six ETFs in India tracking global indices, this comes at a premium. Turning to GIFT City funds for investing in overseas equities requires routing money through the liberalised remittance scheme. RBI allows individuals to send up to $250,000 overseas via the LRS route, including for investing, without having to take its approval. According to Pramod Gubbi, co-founder at Marcellus Investment Managers, large distributors already have been taking the LRS route to invest in global market funds via jurisdictions like Singapore. 'Now, smaller IFAs and MFDs (independent financial advisers and mutual fund distributors) are also exploring this space since global diversification is essential for all investors. Earlier, smaller players accessed global exposure through mutual funds, but with the overseas limit now capped, they are turning to GIFT City," Gubbi said. This, however, poses certain challenges. 'Investors remitting funds via LRS face a 20% tax collected at source, which, although claimable as advance tax, can act as a psychological burden for many," said Shah of Mirae Asset Investment Managers. Gubbi added that the LRS process is still somewhat cumbersome as not many banks offer fully digital options. Not a proven model Investors have the option of tapping GIFT City alternative investment funds (AIFs) to buy global stocks. But the minimum ticket size to invest in these AIFs is $150,000 (about ₹1.3 crore), making it prohibitive for most retail investors. There is no minimum investment size specified for GIFT City retail outbound funds, but currently there is only one such investment vehicle—DSP Asset Managers's Global Equity Fund. As of 31 March, GIFT City had 135 category III AIFs, as per the International Financial Services Centres Authority's quarterly bulletin. IFSCA, based in GIFT City, is India's unified regulator for international financial services. Kartik Sankaran, founder of Fiscal Fitness, a registered distributor, noted the growing interest in GIFT City outbound funds, but said if the mutual fund route opens up again, investors could return to a route that's already tried and tested. 'Most GIFT City funds are feeder structures that invest into other offshore funds, raising concerns about a fund manager's direct capability in researching and managing global equities," Sankaran said.
Mint
30-06-2025
- Business
- Mint
India Inc's strong start to FY26 faces reality check on earnings breadth, valuations
India Inc has started FY26 on stronger footing, with April-June performance expected to outpace the same quarter last year. Analysts attribute this to a favourable base, continuing recovery in rural demand, and a timely monsoon—but warn that the improvement may not translate into broad-based earnings momentum just yet. Domestic demand-driven sectors are expected to carry much of the weight in a quarter marred by external shocks, including US tariff threats, geopolitical tensions in West Asia, and heightened cross-border strain following the 22 April Pahalgam terror attack and India's subsequent Operation Sindoor in May, which targeted terrorist camps in Pakistan and Pakistan-occupied Kashmir. 'Rate sensitive sectors like banks, NBFCs (non-banking financial companies), select auto [companies] and realty are likely to benefit," said VK Vijayakumar, chief investment strategist at Geojit Investments. 'Aviation, telecom and hotels will continue to do well, while IT will remain a drag on earnings." Jay Kothari, lead market strategist at DSP Mutual Fund, finds oil marketing companies (OMCs) and gas distributors tactically attractive. 'Lower energy costs should improve [OMCs'] marketing margins in Q1, while export-linked sectors like IT, pharma and textiles may face near-term earnings headwinds," he said. Even so, analysts expect gains to remain concentrated in pockets, with some sectors continuing to lag and rich valuations limiting market-wide upside. Earnings growth faces structural constraints India's post-pandemic bull run has yet to coalesce around a defining macro theme. Unlike the capex-led cycle of the 2000s or the consumption surge of the 2010s, recent gains have been driven more by margin expansion than robust demand growth. 'I'm cautiously optimistic that the earnings cycle has sort of bottomed out and we could be looking at 12–14% [Nifty] earnings growth in FY26," said Manish Jain, head of fund management at Centrum Broking. 'But I don't expect any dramatic changes in Q1 compared to Q4." In Q4FY25, corporate India's earnings per share (EPS) rose 10-12%, but full-year earnings growth came in below 5%. Moreover, earnings downgrades continued to outpace upgrades, indicating that analysts are tempering their expectations heading into the new fiscal year. A recent report from Nuvama Institutional Equities notes that the margin expansion story may be nearing its limits. Corporate restructuring has largely run its course, and premiumization trends are beginning to normalize across sectors. This has led India Inc.'s profit growth to slow and align more closely with revenue growth, which remained sluggish in FY25. In fact, India's revenue growth has trailed other emerging markets (EMs) post-Covid, averaging below 10% for eight consecutive quarters, according to Nuvama. As India's earnings differential narrows with other EMs, the risk of foreign institutional outflows increases, the report warned. Despite this, the market still expects mid-teens EPS growth over the next two years, forecasting continued expansion in both margins and topline. If these expectations aren't met, the gap between actual and projected earnings could lead to more sustained earnings downgrades, according to the report. Domestic consumption: A swing factor While India's economy has demonstrated resilience to external shocks in recent quarters, high-frequency indicators suggest that a secular pickup in consumption remains out of reach. Economists expect GDP growth to moderate to 6.5% in Q1FY26, down from 7.4% in Q4 FY25. That jump in Q4 was partly supported by a sharp 41% on-year drop in government subsidy payouts, which helped lift the headline GDP. Gross value added (GVA), a cleaner measure of underlying activity, rose 6.8%, revealing weaker momentum. Private consumption, which made up 56.5% of GDP in FY25 according to CMIE data, continued to lag. Urban demand remains inconsistent, with household consumption slowing in Q4 from Q3. Much of the hope for a broader uptick now rests on rural demand. Radhika Rao, senior economist and executive director at DBS Bank, noted that falling inflation should improve household finances and support private consumption in the coming quarters. Rural households are likely to benefit more from better crop yields due to a timely monsoon, she said. 'Following a strong Q4 our proxy gauge for rural demand has held up into April as well. Volume growth appears stronger in non-food categories," Rao added. Manish Jain of Centrum Broking expects consumer durables, NBFCs, and select auto companies to benefit from the rural recovery theme. Debopam Chaudhuri, chief economist at Piramal Group, also sees signs of revival in budget-focused segments. 'I remain optimistic about a broader demand revival as the 2025 festive season approaches," he said. Valuations leave little room for error Even as near-term demand trends show improvement, markets are pricing in a strong recovery. Yet, sector leadership has remained fluid, with most themes—from manufacturing to consumption to digital, having already enjoyed their spotlight post-Covid. According to Nuvama, five-year compound annual growth rates for all sectors now range between 10–30%, leaving little that looks fundamentally cheap. 'I don't think the flavour of the market is going to change a whole lot from what we have seen in the last five years," said Jain. 'One has to be very sharp and nimble to keep pace with the sector rotations in large caps. With small and mid-caps, it is always a growth-driven bottom-up approach."
Globe and Mail
16-04-2025
- Business
- Globe and Mail
Zynext Ventures Invests in Feldan Therapeutics to Drive Innovation in Intracellular Drug Delivery
PENNINGTON, N.J. and QUÉBEC , April 16, 2025 /CNW/ -- Zynext Ventures USA LLC (Zynext Ventures), the venture capital arm of Zydus Lifesciences (Zydus), today announced its investment in Feldan Therapeutics (Feldan), a Canada -based early clinical-stage pharmaceutical company pioneering the development of treatments based on intracellular delivery of therapeutics. Feldan's proprietary Shuttle peptide technology enables the efficient and targeted delivery of biomolecules into cells, unlocking new therapeutic possibilities. The company's lead candidate, FLD-103, is administered directly into basal cell carcinoma (BCC) lesions, where the Shuttle peptide facilitates the delivery of a Hedgehog inhibitor to its target within BCC cells. This innovative approach aims to provide BCC patients with a non-surgical treatment option that improves outcomes and significantly enhances their quality of life. Additionally, Feldan is advancing a pulmonary program that leverages the Shuttle's unique ability to transport biomolecules into hard-to-deliver lung cells to address the unmet and growing medical needs of patients with respiratory diseases. Speaking on the development, Dr. Sharvil Patel, MD of Zydus Lifesciences, said, "At Zydus, we are committed towards advancing the development of novel therapeutics to addressing critical gaps in healthcare through innovation. We are pleased to support Feldan in exploring a potentially safe and targeted option for patients with dermatological and pulmonary disease and help them lead a better quality of life." Jay Kothari , Director of Zynext Ventures, highlighted, "Feldan's platform has the potential to transform intracellular delivery and pioneer next-generation therapeutics, aligning with the disruptive innovations we aim to add to our portfolio." "This partnership with Zynext Ventures marks an exciting step forward in our commitment to improve patients' quality of life and address critical drug delivery challenges," said François- Thomas Michaud , CEO of Feldan Therapeutics. "With Zynext Ventures' strategic expertise and shared dedication to innovation, we are well-positioned to accelerate the development of next-generation therapies." About Zynext Ventures Zynext Ventures is the investment arm of Zydus Lifesciences. The venture capital firm focuses on identifying and investing in promising early-stage and growth-stage companies in the healthcare sector. Zynext Ventures provides financial support, strategic guidance, and industry expertise to its portfolio companies, helping them achieve their full potential and make a meaningful impact on the lives of patients. For more details visit: About Zydus Zydus Lifesciences Ltd. with an overarching purpose of empowering people with freedom to live healthier and more fulfilled lives, is an innovative, global lifesciences company that discovers, develops, manufactures, and markets a broad range of healthcare therapies. The group employs 27,000 people worldwide, including 1,400 scientists engaged in R & D, and is driven by its mission to unlock new possibilities in lifesciences through quality healthcare solutions that impact lives. The group aspires to transform lives through path-breaking discoveries. Over the last decade, Zydus has introduced several innovative, first-in-class products in the market for treating unmet healthcare needs with vaccines, therapeutics, biologicals and biosimilars. For more details visit: About Feldan Feldan is a clinical-stage pharmaceutical company specializing in the development of treatments based on the intracellular delivery of therapeutics. Its proprietary peptide-based technology, the Feldan Shuttle, enables the safe and efficient delivery of antisense oligonucleotides into cells, unlocking the potential for a new generation of therapies. Feldan's lead product for BCC (FLD-103) is in a Phase 1/2a clinical trial, and the company's pipeline expansion is focused on skin and lung diseases. SOURCE Zydus Lifesciences Ltd
Yahoo
16-04-2025
- Business
- Yahoo
Zynext Ventures Invests in Feldan Therapeutics to Drive Innovation in Intracellular Drug Delivery
PENNINGTON, N.J. and QUÉBEC, April 16, 2025 /CNW/ -- Zynext Ventures USA LLC (Zynext Ventures), the venture capital arm of Zydus Lifesciences (Zydus), today announced its investment in Feldan Therapeutics (Feldan), a Canada-based early clinical-stage pharmaceutical company pioneering the development of treatments based on intracellular delivery of therapeutics. Feldan's proprietary Shuttle peptide technology enables the efficient and targeted delivery of biomolecules into cells, unlocking new therapeutic possibilities. The company's lead candidate, FLD-103, is administered directly into basal cell carcinoma (BCC) lesions, where the Shuttle peptide facilitates the delivery of a Hedgehog inhibitor to its target within BCC cells. This innovative approach aims to provide BCC patients with a non-surgical treatment option that improves outcomes and significantly enhances their quality of life. Additionally, Feldan is advancing a pulmonary program that leverages the Shuttle's unique ability to transport biomolecules into hard-to-deliver lung cells to address the unmet and growing medical needs of patients with respiratory diseases. Speaking on the development, Dr. Sharvil Patel, MD of Zydus Lifesciences, said, "At Zydus, we are committed towards advancing the development of novel therapeutics to addressing critical gaps in healthcare through innovation. We are pleased to support Feldan in exploring a potentially safe and targeted option for patients with dermatological and pulmonary disease and help them lead a better quality of life." Jay Kothari, Director of Zynext Ventures, highlighted, "Feldan's platform has the potential to transform intracellular delivery and pioneer next-generation therapeutics, aligning with the disruptive innovations we aim to add to our portfolio." "This partnership with Zynext Ventures marks an exciting step forward in our commitment to improve patients' quality of life and address critical drug delivery challenges," said François-Thomas Michaud, CEO of Feldan Therapeutics. "With Zynext Ventures' strategic expertise and shared dedication to innovation, we are well-positioned to accelerate the development of next-generation therapies." About Zynext Ventures Zynext Ventures is the investment arm of Zydus Lifesciences. The venture capital firm focuses on identifying and investing in promising early-stage and growth-stage companies in the healthcare sector. Zynext Ventures provides financial support, strategic guidance, and industry expertise to its portfolio companies, helping them achieve their full potential and make a meaningful impact on the lives of patients. For more details visit: LinkedIn: Zynext VenturesTwitter: @ZynextVentures About Zydus Zydus Lifesciences Ltd. with an overarching purpose of empowering people with freedom to live healthier and more fulfilled lives, is an innovative, global lifesciences company that discovers, develops, manufactures, and markets a broad range of healthcare therapies. The group employs 27,000 people worldwide, including 1,400 scientists engaged in R & D, and is driven by its mission to unlock new possibilities in lifesciences through quality healthcare solutions that impact lives. The group aspires to transform lives through path-breaking discoveries. Over the last decade, Zydus has introduced several innovative, first-in-class products in the market for treating unmet healthcare needs with vaccines, therapeutics, biologicals and biosimilars. For more details visit: About Feldan Feldan is a clinical-stage pharmaceutical company specializing in the development of treatments based on the intracellular delivery of therapeutics. Its proprietary peptide-based technology, the Feldan Shuttle, enables the safe and efficient delivery of antisense oligonucleotides into cells, unlocking the potential for a new generation of therapies. Feldan's lead product for BCC (FLD-103) is in a Phase 1/2a clinical trial, and the company's pipeline expansion is focused on skin and lung diseases. For more details visit: Feldan Therapeutics Logo - View original content: SOURCE Zydus Lifesciences Ltd View original content: Sign in to access your portfolio
Yahoo
12-03-2025
- Business
- Yahoo
Zynext Ventures invests in Illexcor Therapeutics to advance novel oral therapy for sickle cell disease
PENNINGTON, N.J., March 12, 2025 /CNW/ -- Zynext Ventures USA LLC (Zynext Ventures), the venture capital arm of Zydus Lifesciences (Zydus), today announced its investment in Illexcor Therapeutics (Illexcor), a pioneering biopharmaceutical company developing next-generation oral therapies for sickle cell disease (SCD). This investment underscores Zynext Ventures' commitment to supporting disruptive healthcare innovations that address significant unmet medical needs. Illexcor is developing a first-in-class oral drug that directly targets the root cause of SCD. Their lead asset, currently in preclinical development, is designed to bind to Hemoglobin S and effectively block polymerization and sickling, offering the potential for disease-modifying clinical benefits. Speaking on the development, Dr. Sharvil Patel, MD of Zydus Lifesciences, said, "This investment reflects our commitment to patients battling rare and orphan diseases. Recognizing the profound impact of sickle cell disease on patients' lives, we are pleased to support Illexcor in their efforts to develop a novel therapeutic solution addressing this critical unmet medical need." Emphasizing the strategic significance of the investment, Jay Kothari, Director of Zynext Ventures said, "This investment is consistent with Zynext Ventures' objective of identifying and fostering transformative early-stage healthcare innovations. Beyond the financial backing, Zynext Ventures will leverage its unique data analytics and strategic expertise to accelerate Illexcor's path to delivering this potentially life-changing therapy globally." Andrew Fleischman, CEO of Illexcor stated, "We are excited to partner with Zynext Ventures to advance our lead drug ILX002 into clinical trials later this year. We are hopeful that ILX002 will be a transformative treatment not only for SCD patients in the U.S. but also for millions around the globe. Zynext Ventures and Zydus Lifesciences are in a strategic position to help us achieve these goals." Sickle cell disease is a devastating and debilitating genetic condition that affects up to 10 million people worldwide. The disease continues to severely impact quality of life and longevity. Highly efficacious oral drug therapies are urgently needed to manage this condition on a global scale. About Zynext Ventures Zynext Ventures is the investment arm of Zydus Lifesciences. The venture capital firm focuses on identifying and investing in promising early-stage and growth-stage companies in the healthcare sector. Zynext Ventures provides financial support, strategic guidance, and industry expertise to its portfolio companies, helping them achieve their full potential and make a meaningful impact on the lives of patients. To learn more about Zynext Ventures, please visit: LinkedIn: Zynext Ventures Twitter: @ZynextVentures About Zydus Zydus Lifesciences Ltd. with an overarching purpose of empowering people with freedom to live healthier and more fulfilled lives, is an innovative, global lifesciences company that discovers, develops, manufactures, and markets a broad range of healthcare therapies. The group employs 27,000 people worldwide, including 1,400 scientists engaged in R & D, and is driven by its mission to unlock new possibilities in lifesciences through quality healthcare solutions that impact lives. The group aspires to transform lives through path-breaking discoveries. Over the last decade, Zydus has introduced several innovative, first-in-class products in the market for treating unmet healthcare needs with vaccines, therapeutics, biologicals and biosimilars. For more details visit About Illexcor Illexcor Therapeutics is a biopharmaceutical company focused on the discovery and development of innovative oral therapies for sickle cell disease. Their lead asset is a first-in-class drug designed to directly target the root cause of SCD, offering the potential for significant disease-modifying clinical benefits. Logo - View original content to download multimedia: SOURCE Zydus View original content to download multimedia: Sign in to access your portfolio
