Nithin Kamath, entrepreneur and founder of Zerodha, once said at a conference, “An IPO is not the end but actually the beginning”. This is what foundation of most successful pre IPOs today!
95% of the time, the most sound advice for investors is to “never chase stocks”. Going after overvalued shares is one of the most rookie mistakes any investor can make. Investors who purchase shares through the dealers or brokers know that it is essential to be patient. Moreover, pre-IPO offers excellent benefits, like unique chances to grab big opportunities. The benefits have attracted many newbies and experienced investors towards pre-IPO.
Speaking of IPOs, you always hear about massive IPOs. For instance, Alibaba went public in 2014 and raised billions. Similarly, more than 20 billion were raised when General Motors became public in 2014. Both of these companies are truly inspiring and ideally convey that the basic idea behind investing should – investing early!
Let’s take this discussion further by glancing at the performance of some of the investments by our clients listed below.
ICICI Lombard
First up on the list is ICICI Lombard. It is a general insurance company and doesn’t need any introduction today. ICICI Lombard was available for trading in the pre IPO market in the year 2009 and began trading at just ₹70. ICICI got listed on the stock exchange after eight years in 2017 at a valuation of ₹680 per share, resulting in a nine-time return.
BSE Limited
Next on our list of most successful pre-IPOs is Bombay Stock Exchange (BSE) Limited. Established in 1875 by Premchand Roychand, BSE is the name almost every trader in India is familiar with. BSE Limited released its shares in the pre-IPO share market in 2010 at a starting price of ₹120. The company withheld its shares for seven years and was listed on the National Stock Exchange in 2017. Per-share price of BSE LTD was ₹1069 at the time of listing, leading to an eight times return.
Lux Industries
Another inspiring pre-IPO success story is of Lux Industries. Famous for its innerwear varieties, Lux entered the Pre IPO share trading market in 2014 at a price of ₹75. The company held its unlisted share only for a year and was listed on the stock exchange in 2015. Lux Industries was listed on the stock exchange at a price of ₹735. In just a span of one year, the company gave nine times return on its unlisted shares.
ICICI Prudential Limited
ICICI Prudential is just another insurance company which gives multiple returns to its investors. The company was made available in pre IPO share market in 2011 at an opening price of ₹70, and the company withheld its shares for five years. ICICI Prudential went public in 2016 with per-share price of ₹350, giving a return of four times.
Nazara Technologies
Nazara Technologies is one of the leading mobile games companies in India introduced to the pre IPO share market in 2020 at a share price of ₹500. The company withheld its share in the pre IPO stage for just one year and was finally listed on the stock exchange in the year 2021. Nazara’s listed share price was ₹1990, claiming a return of three times.
Exciting, right! The above-mentioned were some of the most successful pre IPOs, which now have listed shares.
Now let’s check some of the current unlisted shares and their performance in the last few years.
Tata Technologies
Tata Technologies is one of the leading technology service providers in India, and on 23 November 2023, it came out with an IPO of 6.09 crore shares, intending to raise more than ₹2000 crore. At the time, Tata Technologies’ unlisted shares were being traded at ₹500. The IPO came out with a price band of ₹475 – ₹500. The IPO was listed on 30 November 2023 at a price of ₹1400; this means that the people who invested money in its IPO earned an ROI of around 3X on their investment.
CSK
In 2019, CSK started trading their pre-IPO share at a price of ₹11, and now, after 4 years, the unlisted share price of CSK is around ₹195. Moreover, the company is planning an IPO, which will only take the share prices up from here.
Bharat Nidhi
Bharat Nidhi is one of the best options to start investing in unlisted share space. The pre-IPO of Bharat Nidhi was released in the year 2010, with an initial share price of ₹700. In just a span of 12 years, the company gave 15 times return with a per-share price of ₹10600. Therefore, it is considered one of the most successful pre IPO shares.
Tamilnad Mercantile Bank Ltd
Yet another golden opportunity to invest in unlisted shares, Tamilnad Mercantile Bank released its pre-IPO shares in 2008 at an initial price of ₹40. The current price of unlisted Tamilnad Mercantile Bank LTD share is ₹550, which calculates to approx 13x return. The company is still available in the unlisted share space so it might be a lucrative opportunity to strengthen your portfolio.
National Stock Exchange
The National Stock Exchange is another stock that has a good future. Founded in 1992, NSE is India’s second biggest stock exchange. In 2016, NSE started trading its pre-IPO shares and at that time, the share price was around ₹270. As of 18 December 2023, the unlisted share price of NSE is ₹3800. This marks a 14X ROI for the people who invested in the pre-IPO shares. Moreover, the market cap of NSE has also increased substantially since 2016. In 2016, the market cap of the NSE was $1.1 trillion, and in December 2023, the market cap increased to a whopping ₹3.27 trillion.
Reliance Retail
Lastly, on the list of most inspiring pre-IPO success stories is Reliance Retail. The company initially offered its pre-IPO price starting at ₹500 in 2018. Within four years, Reliance Retail’s share price increased to ₹3200, giving an annual return of seven times.
Don’t miss out on this great opportunity! The above-mentioned are some of the best pre-IPO that should not leave out now. Though investing in pre IPOs is mostly beneficial, you should consult with experts for better returns. Connect with Stockify – the best unlisted share broker in India, today for more details on how to make a pre-IPO investment!
