Minance acts as a facilitator that connects employees with ESOPs and are mostly senior-level management people or CXOs as well as global institutional investors to matured individual Indian investors.
This began with the boom in start-up culture and compes attracted talent across the corporate world by providing stock options. It is challenging to locate someone who owns the stock of a company that one wants to obtain. This is where Minance Private Market (MPM) plays a crucial role.
Minance Private Market lists all available stocks on its website and can be bought by anyone with a Demat account with a minimum buying threshold of INR 50,000. It's worth mentioning that no other company can sell these stocks on the e-commerce platform, as MPM has a process patent of the algorithm.
The process is that Minance acts as a facilitator to transact stocks of a private limited or a limited company through this platform by not necessarily connecting the buyer and the seller.
Let's say one wants to purchase stocks of 'ABC' company which is not yet listed on any stock exchange but is listed on our website (we currently have 21 but soon will expand to 60), all one needs to do is to click on the stock icon and add it to cart just like shopping online and make payments through our secured payment gateway.
Upon receiving payments, the customer shall receive an invoice with all details and the stocks will be transferred to their Demat account within 7 working days. We are shortly launching Secondary AIFs, Private Credits and Global Start-ups.
Some unicorn stocks offered by Minance Private Market include PAYTM and OYO, they are tough to find and if one wants to invest in these compes before they hit IPO, now would be the right time. Some other compes listed with Minance Private Market are Tamil Nadu Mercantile Bank, Reliance Retail, Bira, HDFC Securities etc.
In case of apprehensions about the right time to buy these unlisted stocks, it's important to understand that usually, the stock price of these compes rises once they hit IPO- so, is this the right time to buy them? Perhaps YES!
Let's take the case of RBL Bank that had its unlisted stock priced at INR 58 in 2014. The bank went for an IPO in September 2016 with an opening price of INR 320 which within a year rose to INR 550. That's a 10x profit!
Private Assets, in general, have a limited downside. They tend not to fall too much. These can best be compared to real estate. When the economy takes a dip and the stock markets crash, everyone pcs which is currently happening as we speak. Headlines like 'Bloodbath on Dalal Street' in every newspaper and no one likes it. Amidst all this noise, hysteria peaks and people sell their investments.
Leveraged trades like derivatives go first, followed by stocks, then mutual funds and then fixed income instrument bonds. But no one really thinks about selling their real estate investments. Why? Because they're hard to sell. There's paperwork involved, they are illiquid and time-consuming.
Private Assets are something of a similar sort, but they're way easier to sell and there's hardly any paperwork. No one is really pcking to sell their investment in PayTM; hence the risk is minimized.
With the recent drop in the stock markets, the unlisted market has also taken a slight hit because of overall negative sentiments and an extreme liquidity crunch. Stocks are available at around a 15 percent discount to their January highs and we don't expect any further fall, hence making this a great time to invest in Private Assets.
Ever since they launched this revolutionary concept in India a few days back, we have been receiving an overwhelming response. Minance Private Market provides a sophisticated solution to investors by channelizing their money into promising unlisted stocks that are yet to catch the market's eye.
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( With inputs from ANI )