What are Unlisted Shares?
Unlisted shares, also known as pre-IPO shares, are the stocks of companies that are not yet publicly traded on major stock exchanges like the NSE or BSE. Historically, many individual investors were unaware that they could invest in companies not listed on stock exchanges.
The investment landscape is evolving rapidly, with high-net-worth individuals (HNIs) and prominent figures increasingly exploring high-growth startups in the private market as part of their portfolio diversification strategies. According to sources, renowned personalities such as cricketers Rahul Dravid and Zaheer Khan, tennis star Rohan Bopanna, filmmaker Karan Johar, and actor Ashish Chowdhry have invested in unlisted shares, highlighting the growing appeal of this promising investment avenue.
In simple terms, investing in unlisted shares means acquiring a stake in private companies that may eventually go public through an Initial Public Offering (IPO). As these companies mature and expand, early investments have the potential to yield significant returns, making this a compelling option for investors looking to capitalize on future growth opportunities.
Investment Opportunities in the Unlisted Market
The investment opportunities in the unlisted market can benefit investors in two primary ways:
1.IPO Success Stories
Unlisted shares can provide attractive returns, especially when companies transition from private to public markets through an Initial Public Offering (IPO). When a private company goes public, its valuation often rises, offering early investors significant profits. For example:
- Tata Technologies saw a remarkable 156% gain, rising from ₹469 in 2022 to ₹1,200 in 2023.
- Waaree Energies experienced a 311% increase, growing from ₹620 in 2023 to ₹2,550 in 2024.
These success stories highlight the potential for significant financial rewards when investing in companies before they go public.
2.Growth-Stage Investments
Many private companies in the unlisted market are undervalued, offering investors the opportunity to enter early at lower prices before the company reaches its peak valuation. These growth-stage investments can yield impressive returns over time.
Some standout growth stories from the unlisted market include:
- NSE: NSE unlisted share price grew by 256%, from ₹1,700 in January 2021 to ₹6,049 in August 2024.
- Orbis Financials: This company saw an extraordinary 523% growth, rising from ₹65 in February 2022 to ₹405 in September 2024.
- HDB Financial Services: Its share price grew by 107%, from ₹630 in September 2022 to ₹1,304 in November 2024.
These examples show how investing in growth-stage companies can lead to substantial returns as the business matures and its valuation increases.
Where to buy unlisted shares?
Unlisted shares can be acquired through startups, intermediaries, ESOPs, company promoters, and dedicated platforms that facilitate the buying and selling of unlisted shares. One such facilitator is Precize, a platform designed for investors of all levels who want to participate in the unlisted and pre-IPO share markets. Whether you’re an experienced or entry-level investor, Precize offers a seamless and secure way to invest in private companies with just a minimum investment of ₹10,000.
What sets Precize apart is its user-friendly approach, allowing investors to select from a curated list of over 150 private companies. From emerging startups like Boat to established companies like Tata Capital, Precize offers a broad spectrum of unlisted stocks that cater to varying investment goals.
What Precize offers to investors:
- Access to private markets: For both retail and institutional investors, enabling easy entry into the world of private investments
- Research reports encompass comprehensive analyses such as balance sheets, cash flow statements, income statements, industry and peer analyses, and more, providing detailed insights into the company
- Unlisted shares price list: View past price performance of unlisted companies via price histories
- Latest news: Regular updates on pre-IPO shares and market trends
- Hassle-free investment: Streamlined processes to simplify the investment experience
Steps to Buy Unlisted and Pre-IPO Shares on Precize
Investing in unlisted shares can offer significant growth, but thorough research is key. Precize helps by providing detailed research reports and price histories, so you can make well-informed decisions. Once you’re ready, buying unlisted shares with Precize is simple and can be done in three easy steps:
1. Select the Unlisted Company You Wish to Invest In
Precize offers a curated selection of over 150 private companies, ranging from early-stage startups to well-established entities. You can easily browse through the options and choose companies that align with your financial goals.
2. Add Funds to Your Precize Account
Once you’ve chosen your investment, the next step is to add funds to your Precize account. This can be done easily via UPI or bank transfer, making the process smooth and convenient.
3. Place an Order
Once you fund your Precize account, simply confirm your investment and place the order. The shares will be transferred to your depository account within 24-48 business hours.
Conclusion:
In conclusion, unlisted or pre-IPO shares provide a distinctive opportunity for investors to diversify their portfolios and tap into high-growth potential. However, it’s important to recognize that these opportunities come with inherent risks. By conducting thorough due diligence and making well-informed decisions, investors can harness the growth potential of unlisted shares while navigating the evolving market landscape with confidence.
(Disclaimer: Please note that not all companies experience successful IPOs or increases in price valuation. As with any investment, outcomes may vary depending on market conditions and company performance. It is essential to conduct thorough research and assess potential risks before making any investment decisions.)
**’The opinions expressed in the article are solely the author’s and don’t reflect the opinions or beliefs of the portal’**
