Shares of a company that are not yet listed on the Stock Exchanges like BSE, NSE are called Unlisted Shares. Pre-IPO shares are of companies who have initiated the process of IPO (Initial Public Offer), for listing their company on a Stock Exchange

Why should you invest in Unlisted Shares?

• Early Access: You can invest in top unlisted companies before it is available for the masses. You may also be able to invest in unlisted companies at a discount to its listed peers.

• Diversification: Unlisted Shares are a good investment to have in your portfolio for diversification purposes. They are fairly uncorrelated to other asset classes like listed shares, mutual funds, bonds, fds, etc. and can provide higher returns as compared to them..

• Uniqueness: You may be able to invest in unique industries which don’t have any representation in the listed space.

What are the risks of investing in Unlisted Shares?

• Liquidity Risk: Since Unlisted Shares are not traded on an exchange, it is difficult to sell it on the exchange. We suggest that an investor should not invest in Unlisted Shares with a mindset of trading or selling it in a short period of time. One should be prepared to hold it for a few years at least or until the IPO of the share.

• Lock-in of shares: There is a lock-in period of six months if you have the shares of a company that announces an IPO and is getting listed on the stock exchange. You cannot sell such shares for six months from the date of listing.

• Market Risk: Unlisted Shares are also subject to market risks & price risks, similar to their listed counterparts.

Past Performance