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SEBI Relaxes Pre-IPO Lock-In-Period Norms

With an aim to boost the listing of companies, the Market Regulator SEBI has today, on 6th August, 2021, notified a reduction in the holding period for pre-issue capital. 

Earlier the lock-in period for such securities was a minimum of 1 year, which has now been reduced to 6 months for persons other than promoters and 18 months for promoters from 3 years. This could encourage more companies to list and shall provide flexibility to optimise their shareholdings. 

The changes shall be subject to conditions. To read more about it please click the link below.

Read more (Source: Money Control)

The Future of Real Estate Investing is Fractional

Most of the individuals of the Gen X (born between 1965 to 1980) especially from middle class families, have spent majority years of their lives saving up for retirement, getting their children married and after meeting all of these responsibilities, have finally ended up buying a residential real estate restricted to their domestic markets.

On the other end of the demographic, are the millennials (born between 1981 to 1996), who often think of starting their real estate investments around the age of 28-30, but even then, have to begin their investments with huge down payments and seek big loans with lengthy tenures that take years to pay back. And once they finally own the property, there are ongoing expenses like mortgage payments, property maintenance, property taxes and insurance.

From the years 1990 to 2010, post globalization and liberalization, travelling across countries and continents became more frequent and individuals began to recognize themselves as global citizens. This changed further from the years 2010 to 2020, when these individuals began investing in real estate across the globe. It was more after 2008, the global financial crisis, when investors went beyond their traditional residential investments and started venturing into different asset classes globally like commercial, warehouses, hotels etc. However, in 2020, the world was presented with an unprecedented economic, humanitarian and healthcare challenge.

The pandemic affected everyone and changed nearly everything. We have advanced by almost a decade because of the ongoing pandemic in terms of technology usage and the world is closer, now more than ever. So what now?

This is where fractional ownership in real estate comes in the picture. For the first time, investors can buy a share of a property anywhere across the globe, through a fully-compliant, fractional, tokenized ownership.

FracAssets is a tech backed distribution platform that enables investors to identify fractions of real estate across the globe. FracAssets now gives investors an opportunity to diversify their real estate portfolio by investing in fractions of Commercial, Residential, Warehouses, Hotels, Second Homes, Senior Living and Co-Living across the globe.

So what is Fractional Ownership?

Fractional Ownership, in simple terms, is when a number of investors, not necessarily known to each other, join togetheFractions of Propertyr to invest in a real estate asset so that all of them can benefit from a share of the income that the asset generates, and any appreciation in the value of the real estate. For example, a 3,500 sq ft office space for approx., Rs 10 crore in the commercial hub of Mumbai, can be owned by 100 diverse and unrelated individuals who each invest an amount of Rs 10 lakh.

This way, every investor earns returns proportionate to his respective share from the total rental yield, enjoys currency appreciation and can exit the investment at the prevailing market value of the property once it appreciates.

Future of Real Estate investing is only Fractional - Investments beyond Boundaries and Nationalities – So what’s happening globally?

Fractional ownership might be a fairly new concept in India, however, we believe that the idea is here to stay and the future of real estate investing is only fractional. If you look at global markets like the USA, Canada, China, Singapore and Hong Kong, fractional investments have shown significant traction. Fractional ownership in real estate is expected to become a dominant investment trend in Indian markets as well in the coming years, as it provides accessibility for every generation of Indians to invest and diversify their real estate which was previously limited through the traditional route and most did not have the financial means to do so.

Key Benefits of Fractional Ownership:

Low Ticket Size:

Investments in fractional real estate globally start from as low as USD 10 in USA, CAD 50 in Canada and AED 2500 in UAE. Fractional ownership in a Grade A property is a great solution for someone who is looking for a pocket-friendly investment, outside the volatility of share markets and low-interest rates on fixed deposits. Thus, providing a completely new investment asset class to investors, who can now own a real estate asset according to their budget and location preference.

Asset Class & Location Diversification:

Like the adage goes - “Don’t put all your eggs in one basket.”, with fractional ownership an investor with a budget of say Rs 50 lakh, can allot the investment amount across fractions of properties and receive returns from a Hotel Apartment in Dubai, a Senior Living in Ontario or a Warehouse in India, in turn diversifying their portfolios. 

Currency Diversification:

Investors unlock a whole new path to earn returns - currency appreciation, beyond the traditional rental yields and capital appreciation. Investing across multiple locations and currencies enables investors to earn returns in dollars, dirhams, euros etc., thus diversifying their currency portfolio and reducing the risk of investing in only one or two currencies.

For example, a 23 year old, just starting off her career, can save up and invest in a fractional residential property in UAE and benefit from a rental yield of approx. 6 to 7% along with capital appreciation. The investor is also benefiting from currency appreciation as dirham is pegged to the US dollar.

Accessibility:

Fractional ownership provides access to premium properties which were previously only available to high net-worth individuals and large institutions with very high ticket sizes.

Pre-vetted Properties: 

All the properties listed on the platform have a stringent screening criteria and undergo thorough due diligence. Fractional real estate products are professionally managed assets and in general a fully supported end-to-end process where investors have hardly any headache to take. An investor only requires to have their KYC documents and an online bank account to start investing. We at FracAssets, identify assets from different platforms that are ready, fully constructed properties and are pre-leased. This mitigates the risk involved in dealing with real estate that is under development or not constructed.

How are the investments structured?

For each property, a Special Purpose Vehicle (SPV) is created, which makes such co-ownership in real estate possible.

A Special Purpose Vehicle (SPV) is just “a separate new entity” – it’s no different than setting up a new business. An SPV is a distinct company created for a specific purpose with its own assets and liabilities. Properties are owned in newly formed SPVs and the customers are shareholders/partners of the SPV. SPVs only purpose is to hold the property on behalf of the customers and no other operational activities are carried out in them.

Investment Opportunities

FracAssets uses various global fractional platforms to regularly provide investors investment options in real estate across Commercial, Residential, Warehouses, Hotels, Second Homes, Senior Living and Co-Living. A few opportunities on our platform are a Residential Apartment in Dubai, UAE, an office space in Mumbai, India, a Second Home in Paphos, Cyprus etc.

To Summarize for Millennials and Zoomers the Future of Investing in Real Estate is only Fractional

Individuals can no longer be restricted to a particular nationality as decided on paper or by their birthplace. Technology has been disrupting every industry and real estate is no different. Now with technology and social media each one of us is a global citizen - one world. An individual who wasn’t thinking beyond residential real estate is now not only looking at investing globally but investing across Commercial, Warehouses, Hotels, Second Homes, Senior Living and Co-Living globally. Fractional ownership is a trend that has entered the Indian market recently and has since then made real estate a more lucrative and feasible investment option for all generations of Indians. Fractional ownership is gaining great acceptance and traction from both the investors as well as the overall real estate industry and is here to stay. 

For more information on Fractional Opportunities in Real Estate, please feel free to write to us at contactus@fracassets.com

 

About the Author

The author includes Hitesh Dhankani (CEO – Analah21 & FracAssets) and is assisted by Fazilat Reshamvala.

 

Disclaimer: Prior to making any investment decisions, any recipient of this document or the information should take steps to understand the risk and return of the investment and seek individualized advice from his or her personal financial, legal, tax and other professional advisors. Investments in real estate and unlisted shares carry a risk and may not provide the anticipated returns and there is a possibility of losing the entire capital as well. Past performance is not a guarantee of future return, nor is it necessarily indicative of future performance. All information presented herein is proprietary and based on independent research not meant for reliance, circulation, or reproduction by any third party without our express consent.

Nazara Technologies - Multibagger Story for Investors of Unlisted Market

One of our transactional company’s - Nazara Technologies Ltd. made a stellar debut on the exchanges this Tuesday, 30th March 2021, as the shares listed at Rs 1,990 on NSE, a 80.74% premium over its issue price of Rs 1,101 per share. On BSE, the company got listed at Rs 1971, a 79.02% premium. The shares hit an intraday high of Rs 2,026, rising as much as 84% in early trade on Tuesday.

Clients that have transacted in Nazara Technologies in the unlisted space at Rs 550-650 levels in April-May 2020 have seen significant returns. The company’s initial public offer received a whopping subscription of over 175.46 times, making it the second-most subscribed issue so far in 2021.

As we are writing this article, the share price is Rs. 1,592. One thing investors of unlisted shares should keep in mind is that these shares go in a lock-in for 365 days post listing, hence investors must understand the risk and return of the investment and seek individualized advice from his or her personal financial, legal, tax and other professional advisors prior to making any investment decisions. 

We congratulate all Investors and the entire team of Nazara for a blockbuster listing of the company. 

Follow us on LinkedIn @analahcapital to be a part of the next big unlisted story! 

 

Disclaimer: We are not a stock exchange or an advisory platform and are not controlled by SEBI. We create liquidity for shareholders. Investments are subject to market risks. Read all scheme related documents carefully. There is no clarity on when the IPO will come and there is neither any verbal nor written communication on the same from our side. We, our group companies, directors, employees, partners, business associates are in no way acting as advisors but act as referral partners or intermediaries for facilitating transactions. 

 

Analah Capital, CEO – Ms. Vaishali Dhankani gets recognized as the Top 10 Women Leaders in Finance in India, 2020 - CEOInsights

Have you heard of the famous saying ­ `Leaders are made, not born overnight'? The transformation from a mere student into a well-versed leader is no piece of cake for anyone. It takes volumes of perseverance, grit, determination, and most importantly passion to stand-out amidst the crowd as a successful business leader.

In finance, as career level rises, female representation has showcased a significant presence over the last few years. In India, several successful women professionals are playing critical roles in shaping the country’s financial sector. Vaishali Dhankani, the Founder & CEO of Analah Capital, believes that women tend to be better in multitasking and are more honest and ethical in their approach. In her vision, they are calculated risk-takers with foresightedness and are less prone to over-confidence. Vaishali has a positive outlook to amplify the operations of Analah Group across global platforms. It was initially a team of professionals in MBA & Chartered Accountants having niche experience in Pre IPO and Unlisted Markets which set the ball rolling for Analah Capital, later diversifying into a Platform for Global Private Equity and Real Estate Opportunities. At Analah Capital, Philanthropy means giving financial independence to our Investors and Partners.

CEO Insights Analah Capital

"At Analah, we believe our values shape and define the culture of our company. Our values serve the foundation on how we work with our Investors & Partners and make our business decisions".

In a brief conversation with CEO Insights, Vaishali Dhankani talks about her role in establishing Analah Capital and how she perceives the markets. To read the full article, visit:

https://www.ceoinsightsindia.com/vendor/vaishali-dhankani-an-insightful-philanthropist-cid-1569.html

How to Buy Unlisted Shares?

Following is a step by step process on how to buy Unlisted Shares in India:

When someone buys Unlisted Shares of a company, he or she also gets certain rights such as the right to earn dividend, bonus, apply for the right issue, and also part-ownership of the company. To buy Unlisted Shares, the first step is to open a trading account or a Demat account. These accounts are linked to the account holder’s bank savings accounts to ensure a smooth transfer of funds.

Identify the Best Platform 

Which platform is the finest and most reliable for transactions of Unlisted Shares? Don't worry, you are not alone who has the same query, many of us are still finding the right platform to Buy & Sell Unlisted Shares. While identifying a platform for Unlisted Shares, keep 3 things in mind, right prices, smooth transaction process, and good customer support. 

Open an Investment Account

To store or keep Unlisted Shares, you need an investment account (Demat Account). If you do not have a Demat account, then you have to register for a Demat account online. Get ready with documents and apply for a Demat Account, within some days your account will be opened and you are ready to buy Unlisted Shares

Choose the Unlisted Company you want to invest in

Platforms like Analah Capital, TradeUnlisted provide detailed research reports for various Unlisted Companies. Do read these research reports, watch the news, YouTube tutorials, get advice from your financial advisor, or do your own research and find the unknown rising star.

Buy Unlisted Shares

Choose the shares you want to buy, check the prices and transfer the amount, within 24-48 hours, you will get those shares in your Demat account. 

Analah Capital is the leading platform for Buying & Selling of Unlisted Shares. We aim to offer the best market prices in India. We also provide online buying services for Unlisted Shares. An Investment Specialist will be assigned to you for your queries regarding the Buying or Selling of Unlisted Shares.

Review your Unlisted Shares regularly

Once you're done, it all begins! Keep track of your unlisted assets so you'll know the right moment to invest more or book profits.

We hope this topic answers your question about where to Buy Unlisted Shares online. Keep visiting Analah Capital Blogs to be up to date on Pre IPO and Unlisted Shares. For any further queries, please reach out to us at contactus@analahcapital.com.

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