What Are Unlisted Shares?
Unlisted shares, or pre-IPO shares, are stocks of companies that have not yet been listed on major stock exchanges like the NSE or BSE. In the past, individual investors were often unaware of the opportunity to invest in companies before they go public.
However, the investment landscape is rapidly evolving. High-net-worth individuals (HNIs) and influential figures are increasingly turning to high-growth startups in the private market, leading to a surge in demand for unlisted stocks.
Prominent personalities like 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 popularity of this investment option. As the private market expands, more investors are recognizing the potential of an unlisted market.
Investment Opportunities in the Unlisted Market
The unlisted market presents two primary benefits for investors:
1. IPO Success Stories:
A key characteristic of investing in unlisted shares is the potential for substantial returns when companies transition to public trading. As these companies go public, their valuations often increase, providing early investors with opportunities for significant profits. Notable IPO outcomes include:
- Tata Technologies: Experienced a 156% increase, 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 examples highlight how companies can experience significant growth during their IPO.
2. Growth-Stage Investments:
Many unlisted companies are initially undervalued, which can offer early investors the chance to acquire shares at a lower price before their valuations rise. Over time, these investments have the potential to appreciate. Examples of growth-stage companies include:
- NSE: NSE unlisted share price saw a 256% increase, from ₹1,700 in January 2021 to ₹6,049 in August 2024.
- Orbis Financials: Increased by 523%, rising from ₹65 in February 2022 to ₹405 by September 2024.
- HDB Financial Services: Increased by 107%, from ₹630 in September 2022 to ₹1,304 in November 2024.
These growth stories exemplify the potential returns available in the unlisted market.
How to Buy Unlisted Shares
Unlisted shares can be purchased through various channels, such as startups, intermediaries, ESOPs, company promoters, and dedicated platforms that facilitate the buying and selling of unlisted shares. One such platform is Precize, which allows investors to easily enter the unlisted and pre-IPO share markets. Whether you’re a seasoned investor or new to this asset class, Precize offers a seamless experience, with a minimum investment starting at ₹10,000.
What sets Precize apart is its ease of use, enabling investors to select from a curated list of over 150 private companies. Whether you’re interested in emerging startups like Boat or established companies like Tata Capital, Precize offers a diverse range of unlisted stocks to meet various investment goals.
What Precize Offers to Investors
Precize offers several key benefits to investors, making it an ideal platform for those looking to explore unlisted shares:
- Access to Private Markets: Precize offers both retail and institutional investors an accessible entry into private markets, with a minimum investment of ₹10,000, allowing them to invest in high-growth companies before they go public.
- Comprehensive Research Reports: Precize provides comprehensive analyses of private companies, offering detailed financial reports such as balance sheets, income statements, and cash flow statements. In addition, it includes peer comparisons and industry insights, equipping investors with the essential data needed to make informed and confident investment decisions.
- Unlisted Shares Price List: The platform offers historical price data for unlisted companies, allowing investors to track past price trends and assess potential investment opportunities.
- Latest Market News: Precize regularly updates investors on pre-IPO shares, market trends, and news from the private sector, helping investors stay informed.
- Hassle-Free Investment Process: Precize simplifies the investment process by offering a seamless and efficient platform for buying and selling unlisted shares, empowering investors to effortlessly access the private market.
Steps to Buy Unlisted & Pre-IPO Shares on Precize
Investing in unlisted shares presents significant growth opportunities, but it’s important to conduct thorough research before making investment decisions. Precize helps by providing detailed reports and historical price data, ensuring that investors have all the information they need to make informed choices. The process of buying unlisted shares through Precize is easy and can be completed in three simple steps:
Step 1: Select the Unlisted Company You Want to Invest In
Precize offers a curated selection of over 150 private companies, ranging from early-stage startups to well-established industry leaders.
Step 2: Add Funds to Your Precize Account
Once you’ve selected a company to invest in, the next step is to add funds to your Precize account. You can easily add funds using UPI or bank transfer, making the process seamless and convenient.
Step 3: Place Your Order
Once your funds are updated, you can place your order to purchase unlisted shares. Within 24 to 48 business hours, your shares will be transferred to your depository account (i.e. NSDL, CDSL), allowing you to track your investment and monitor its performance.
Conclusion
Unlisted and pre-IPO shares offer a distinctive opportunity for investors to diversify their portfolios by gaining access to high-growth companies before they enter the public market. This investment avenue allows individuals to potentially capitalize on the growth of emerging companies at an early stage, potentially positioning their portfolios for long-term success. However, it is important to recognize that investing in unlisted shares involves inherent risks, including market volatility and the uncertainty of a company’s future performance once it becomes public.
To navigate these challenges successfully, thorough research and informed decision-making are essential. By carefully evaluating a company’s financial health, growth prospects, and market position, investors can mitigate risks and make choices that align with their investment objectives. Precize supports this process by offering detailed research reports, historical price data, and expert insights, which can help investors make confident decisions in the private market.
Ultimately, leveraging the resources and insights available through platforms like Precize ensures that investors are not only well-prepared but also well-positioned to explore the opportunities that unlisted shares present. While the private market can be complex, having access to reliable data and research helps investors approach these investments with clarity and strategic foresight.
Disclaimer:
Not all companies achieve successful IPOs or see price valuation increases. As with any investment, outcomes may vary depending on market conditions and company performance. It’s crucial to conduct thorough research and assess risks before making any investment decisions.)
