Get the latest on WiseX’s investment opportunities and frameworks in this category. Discover innovative investment structuring and essential updates, ensuring you’re well-informed for making smart investment choices.
Post Pandemic, the Indian commercial real estate landscape has undergone a paradigm shift, with managed leasing office spaces, often referred to as flex office spaces, leading the way. The JLL Office Market Update for Q2 2023 throws light on this burgeoning sector, underscoring a notable 1.5x growth in seats leased from 2021 to H1 2023, touching a remarkable 1,31,700+ seats. Cities like Bengaluru, Pune, and Delhi NCR are at the forefront of this revolution, accounting for a substantial 68.1% combined seat take-up in H1 2023 alone.
This exponential growth has heralded an era of immense potential for managed leasing players, striving to meet the escalating demand. At the heart of this transformative journey stands WiseX. While we initially carved a niche for ourselves in the fractional ownership of commercial real estate, facilitating our investors to reap the benefits of commercial properties, we quickly identified the vast opportunity that the flex office space sector presented.
Having a keen eye for market trends, WiseX meticulously analysed the prospect of raising capital for managed leasing players via a unique mechanism – the lease rental discount (LRD) framework. This framework, an innovative brainchild of WiseX, is designed to provide investors with lucrative opportunities while ensuring all associated risks are collateralised and mitigated.
Our track record is a testament to our strategic prowess. WiseX has triumphantly funded six LRD opportunities to date. We’ve partnered with industry stalwarts like Skootr, Attic, and DevX, with each association scripting its success story. The highlight being our collaboration with Attic: while our inaugural Series-A opportunity with them was subscribed in 15 days, Series-B witnessed subscriptions in just 5 days. But the pinnacle of this partnership was the Series-C opportunity launched in September 2023, which astoundingly got fully subscribed in a mere 2 days! Not far behind was our October 2023 endeavour with DevX, their LRD Series-B opportunity, which was completely subscribed in an exceptional 2 working days.
As the realm of managed leasing office spaces continues its upward trajectory, WiseX is committed to staying ahead of the curve, curating pioneering opportunities for its investors and partners alike.
In the diverse world of investments, understanding the landscape is crucial for navigating it successfully. At WiseX, India’s preeminent neo-realty investment platform, we believe in equipping our investors with key insights to make informed decisions. A fundamental aspect of this knowledge is distinguishing between listed and unlisted securities. This blog sheds light on these two categories, helping you understand their differences, advantages, and implications for your investment strategy.
Understanding Listed Securities Listed securities are financial instruments traded on formal stock exchanges like the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE). They encompass a range of products, including stocks, bonds, and derivatives.
Advantages of Listed Securities Regulatory Oversight: Listed securities are regulated, offering investors a degree of protection. Liquidity: Due to their availability on public exchanges, they are easier to buy and sell. Transparency: Prices of listed securities are available in real-time, ensuring transparency.
Challenges with Listed Securities Market Volatility: These securities are often subject to market fluctuations. Global Influence: External factors like geopolitical events can impact prices.
Exploring Unlisted Securities Unlisted securities, in contrast, are not traded on public stock exchanges. These include private company stocks, government securities not traded on the market, and other financial instruments.
Advantages of Unlisted Securities Potential for High Returns: They often offer the potential for higher returns compared to their listed counterparts. Less Market Impact: Less susceptible to market volatility and sentiment.
Challenges with Unlisted Securities
Lack of Liquidity: Selling these securities can be challenging due to the absence of a ready market. Limited Information: There’s often less publicly available information, making valuation difficult.
Why the Distinction Matters? Understanding the distinction between listed and unlisted securities is pivotal for investors. It affects portfolio diversification, risk assessment, and aligning investments with personal financial goals. For instance, listed securities can provide stability and ease of access, while unlisted securities can offer unique growth opportunities, albeit with higher risk.
Listed vs. Unlisted: A Comparative Insight A comparative analysis of these two types of securities reveals varying risk profiles, return potentials, and suitability for different investor types. While listed securities offer a safer bet for conservative investors, unlisted securities can be attractive for those willing to take on more risk for potentially higher returns.
Listed Securities
Factors
Unlisted Securities
Publicly traded companies, ETFs, REITs
Issuer Types
Private companies, Start-ups
Subject to market conditions but generally stable due to higher regulatory standards
Credit Risk
Higher due to less regulatory scrutiny and transparency
High due to trading on public stock exchanges
Liquidity
Limited as they are not traded on public exchanges
Active, with price transparency due to real-time market data
Secondary Market
Less active with pricing that can be opaque or determined through negotiation
Regulatory frameworks like SEBI in India ensure compliance with stringent rules
Regulatory Oversight
Less stringent, subject to private agreements and less formal regulation
Tax treatment as per standard capital gains tax for securities
Tax Considerations
May have different tax implications based on investment duration and vehicle
Stocks, derivatives, bonds, etc., across various sectors
Investment Opportunities
Equity stakes in private ventures, debt instruments with negotiated terms
Brokerage fees, transaction costs, and taxes may apply
Trading Costs
May involve valuation costs, but typically lower transaction fees since they are not traded on exchanges
Aligning Your Investment Strategy Choosing the right mix of listed and unlisted securities depends on your investment goals, risk tolerance, and time horizon. WiseX can assist in crafting a personalized investment strategy that balances these elements, ensuring your portfolio aligns with your long-term financial aspirations
At WiseX, we understand that the investment world can be labyrinthine. Our aim is to provide clarity and guidance, helping you navigate the maze with confidence. Whether it’s listed or unlisted securities, our expertise and innovative platform are here to support your investment journey every step of the way.
Embark on your investment journey with WiseX. Explore a world where informed decision-making leads to fruitful investments. Connect with us today and take the first step towards realizing your financial dreams.
