unlisted shares
( Pre IPO)
Unlisted shares are equity shares of companies that are not listed on any stock exchange like NSE or BSE. These shares are traded in the over-the-counter (OTC) market through dealers, brokers, or private placements.
Why Invest in Unlisted Shares?
- π High Growth Potential β Many startups and pre-IPO companies fall in this category.
- π‘ Early Entry Advantage β Invest in companies before they go public.
- π Wealth Creation β If the company lists successfully, valuations can multiply.
- π Portfolio Diversification β An alternate asset class beyond traditional equities.
Risks to Consider
- Low Liquidity β Selling can be difficult compared to listed stocks.
- High Risk β Uncertainty in company performance and regulatory aspects.
- Valuation Concerns β No daily market price, so prices depend on negotiation.
Who Should Invest?
Unlisted Shares Are Best Suited For:
- High-net-worth individuals (HNIs)
- Long-term investors seeking high growth opportunities
- Investors comfortable with high risk for potentially higher rewards
