What Are Pre-IPO Shares?
Pre-IPO Companies are private firms who intend to have a listing on the stock market leaderboard. In India that would mean being listed on the NSE or BSE or both. Once listed on the stock market, these companies are referred to as public listed companies. Such firms will have an Initial Public Offering (IPO) to invite investors to buy shares/stock of the company. So to put things in perspective, companies who have opened doors to investors, but have not yet been listed on the stock market and have not yet made an Initial Public Offering are referred to as Unlisted/Pre-IPO shares.
Why Invest in Pre-IPO Shares?
When it comes to Unlisted Pre-IPO shares, buying early is the key to maximizing profits. These are always available at a lower cost versus listed peers. So, by investing early in Unlisted Pre-IPO shares of a company, you stand a chance of multiplying your returns significantly once the company is officially listed on the stock exchange (NSE/BSE).
How to Invest in Pre-IPO Shares?
You can buy or sell unlisted stocks in a few simple steps.
- Choose a company.
- KYC verification & payment.
- Transfer of shares is done.
Ready to buy unlisted shares in India? Check out our portfolio online.
Investment in Unlisted Pre-IPO shares delivers multifold returns.
FAQs
In very simple terms, unlisted shares refer to the stocks of the companies that are not listed on any stock exchange. Unlisted (Pre-IPO) shares, on the other hand, are public offerings to raise funds ahead of the IPO launch.
Unlisted (Pre-IPO) share trading is one of the most strategic ways to build wealth in the long term. Since these companies are not listed, their stocks are available at a lower price than their listed peers. One of the reasons why investors buy Unlisted (Pre-IPO) shares in India is Exponential Gains once the companies are listed.
Stockify is one of the best platforms to buy unlisted shares in India, we have simplified buying and selling of Unlisted (Pre-IPO) shares in India. You can buy or sell Unlisted (Pre-IPO) stocks in a few simple steps.
- Choose a company.
- KYC verification & payment.
- Transfer of shares is done.
Unlisted (Pre-IPO) shares are usually offered by early-stage investors, promoters & employees in the secondary market to raise funds in advance to generate liquidity. Stockify is the best place to buy unlisted shares in India that brings both sellers and buyers together for hassle-free Unlisted (Pre-IPO) share trading.
Yes, it is completely legal to buy Unlisted (Pre-IPO) shares. However, you should only buy them from reputed Unlisted (Pre-IPO) shares brokers because these stocks are not listed or traded on stock exchanges. Stockify is a reputed Unlisted (Pre-IPO) share trading platform specializing in the sourcing of top Unlisted (Pre-IPO) shares in India. Check the updated Unlisted (Pre-IPO) stock list.
Unlisted (Pre-IPO) investing has lots of advantages including lucrative opportunities for exponential returns once companies are listed on the stock exchange. Moreover, due to low liquidity, these stocks are likely to be available at a lower price so the return on investment remains high. Popular stocks like Tata, Reliance, and Chennai Super King have increased multiple times in the span of a few years.
As per current SEBI rules, the lock-in period for pre-IPO shares is 6 months right after the listing of IPO.
In layman’s terms, unlisted shares are stocks of companies that are planning to launch an IPO and are not listed on recognized stock exchanges. Delisted shares, on the other hand, are those which were once listed on stock exchange but removed from stock exchange for certain reasons. However, you can still buy delisted shares in India at Stockify.
Most investors prefer investing in unlisted shares to diversify their portfolio. Moreover, these Unlisted (Pre-IPO) stocks can go public anytime to offer better return as compared to their listed peers. Additionally, Unlisted (Pre-IPO) shares have low liquidity and volatility leading to lower valuation and higher return on investment.
The lot size and valuation might vary depending on the company. Therefore, it is recommended to connect with the best unlisted share brokers in India, Stockify to make a better decision. We do proper research and try our level best to lock the best deal for our retail public HNI investors.
If you are planning to invest in Unlisted (Pre-IPO) shares, let’s begin on a positive note by discussing the benefits of investing in Unlisted (Pre-IPO) shares. Since they are majorly from big companies, Unlisted (Pre-IPO) shares grow faster than listed peers. Also, they diversify the risk and keep price fluctuations at bay.
Just like a coin has two sides, Unlisted (Pre-IPO) shares have some risks too but they are primarily associated with the research in the pre-purchasing phase. One of the biggest risks with investing in unlisted shares is liquidity (IPO Delay) and growth which solely depends on the company’s management. At Stockify, we do deep analysis and shortlist the most profitable unlisted shares for investors.
Every unlisted public company having more than 100 shareholders must issue the shares in dematerialized (DEMAT) form. These stocks are available in a form of depositories and shall be traded with certification of ownership.
There is a standard procedure of transferring shares to your DEMAT account. Similar to the purchase of listed shares, if you buy a share on day ‘A’, your shares will be transferred to your DEMAT account by the end of ‘A’+1 day maximum. At Stockify, we have a simplified process that smoothly transfers in just 24 hours.
Yes, you can buy shares and make a payment in cash but at Stockify we do not accept cash payments. We only accept payments via legal banking channels for domestic investors and NRO bank accounts for NRI clients.
Since Unlisted (Pre-IPO) stocks are not traded on the stock exchange, you can save STT and other securities usually paid on regular stocks. However, there are long term capital gains (20%) and short term capital gains (as per income slab) that are applicable to Unlisted (Pre-IPO) shares as well. (Read The Article)
As of now, we are not a registered investment advisor and we do not recommend trading of any share. We just list the most profitable Unlisted (Pre-IPO) shares based on our analysis and you are recommended to take advice from your financial advisors before making any decision. However, we would be happy to assist on client requests.
No, we don’t have any sort of hidden cost associated with our services. All the costs are included in the offering even if there is any brokerage or commission that needs to be paid to the resellers of Unlisted (Pre-IPO) shares.
Stockify is one of the leading unlisted share trading platforms that has been assisting retail/HNI investors to diversify their portfolios and investment. We sign a Letter of understanding & other set of legal documents to protect our and the client’s interest in case of any dispute.
