What are Unlisted Shares?

Pre-IPO or the unlisted shares are equity shares of a company, which is yet to go public.

Why should I buy unlisted shares?

  • Low IPO Allotments due to oversubscription
  • Retail Investment Opportunity in the ultra-growth stage of a company
  • Maximum Value Unlocking in a limited time

What factors should I consider before investing in unlisted shares?

  • Company performance track
  • Execution capabilities of company’s management
  • Period of investment
  • Procurement price of the shares

Where are the Unlisted shares held?

The shares are in Demat Form. Unlisted holdings are stored in CDSL or NSDL demat accounts.

How do I sell my unlisted holdings?

  • Pre IPO: Investopia is a complete Bazaar. We give you the option to sell it back to us as well.
  • Post IPO: After the 6 months lock-in period, shareholder can sell the shares usually as in case of any listed holding.

What is this ‘lock-in period’?

As per SEBI guidelines, If a company goes public, through the IPO route, all the Pre-IPO holdings are locked in the demat accounts of shareholders for a period of 6 months.

Will I be eligible for dividend, bonus etc?

YES! If a company decides any such proceeding, shareholder will be eligible for same.

"An investment in knowledge pays the best interest."

Benjamin Franklin

  • Bear market

    A bear market is the opposite of a bull market. It is a long haul of dipping stock prices, often characterized by extensive pessimism, rising unemployment, business recession etc.

  • Bull market

    A bull market is a prolonged period where prices of securities are rising or are expected to rise (basically an upward trend). It is the opposite of a bear market.

  • Capital

    Capital a.k.a. पूंजी simply means the money you invest.

  • Capital Gain

    It’s the मुनाफा! The positive difference between the purchase price and the price at which you sell a security.

  • Diversification - Golden rule

    Never put all your eggs in one basket.' By investing across different industries, different sizes of companies and even in different countries, on can manage the risk in their pursuit to stay profitable.

  • Dividend

    Companies issue dividend out of its profits to its shareholders in the form of cash payments, stocks etc. Frequency varies - monthly, quarterly, semi-annually, or annually.

  • Inflation

    Basically महँगाई ! A rise in the prices of goods and services over a given period. It’s often equated with loss of purchasing power.

  • IPO

    Initial Public Offering (IPO) is a company’s initial offering of equity shares as it goes public.

  • Liquidity

    Liquidity means how quickly you can get your hands on your cash, whenever you need it.

  • Stock

    An investment representing ownership in a company. Ownership stakes are divided into shares, and the magnitude of shares purchased indicate the level of ownership in the company.

  • Volatility

    The amount and frequency that an investment fluctuates in value.