Buying and selling professionally weaved unlisted shares is a newfag among investors. The reason behind this is the ease of accessibility through the stock market, and growing awareness among netizens has escalated the number of investors interested to buy unlisted shares. As per the reports shared by NSE (National Stock Exchange), there were almost 138 crore individuals in India who had actively invested in the stock market in the second quarter of 2021.
Maintaining pre-IPO shares requires the bare minimum from the investors. You can easily invest in unlisted shares by meeting some basic requirements. This includes being financially stable, having information about certain equity shares, and recognising expert unlisted share brokers. There are multiple examples of unlisted shares that are working exceptionally well and showcasing a rise in the stock market, which include Hexaware Technologies Ltd, Capgemini Technology Service India Limited, Fincare Small Finance Bank, etc. Investors believe that unlisted shares are preferable when looking for long-term monetary benefits.
Demystifying the difference between listed and unlisted shares?
Enterprises are divided into listed and unlisted companies according to their access to capital. Public companies are always listed companies, although the vice versa may not always be true. Additionally, a private limited company or a public limited company could easily provide unlimited shares. A corporation must list its securities in the stock exchange in order to trade in the inventor’s market.
A company is referred to as listed when any of its securities are recognised by the stock exchange. Investors can easily exchange these companies’ securities. While companies that are not publicly traded are not required to follow SEBI laws. They must, however, abide by the rules established by the Ministry of Corporate Affairs or the Central Government. Therefore, the central government, or MCA, is responsible for overseeing the affairs of unlisted corporations.
| Factors | Listed Shares | Unlisted Shares |
| Meaning | A listed share is equity where the shares are openly traded. | An unlisted share is a pre-IPO share that is not yet listed on the stock market. |
| Liquidity | Shares are liquid because they are readily open for investment. | They are not openly available in the market, which makes these shares illiquid. |
| Regulatory Requirements | They have strict regulatory standards and are complicated. | Unlisted shares are less complicated and have simple regulatory requirements. |
| Valuation | Listed shares are simple to determine market value, and their price can be conveniently calculated. | There is unavailability of their stock prices; thus, their market value is uncertain. |
How does it make a difference in trading?
Unlisted shares are market equity that is required to diversify the investor’s portfolio. Compared to listed shares, pre-IPO provides higher return possibilities. The unlisted shares would eventually go public, which could provide a significant gain when they are listed on stock exchanges. Additionally, the majority of unlisted shares are illiquid; they can draw the attention of different inventors who are prepared to hold onto their investments for a prolonged period of time.
Apart from this, there are also significantly fewer concerns about volatility because of the illiquidity of the shares. Unlisted share investing is particularly flexible, and new investors are showing interest in these businesses as they seek better monetary benefits throughout.
Expert advice for trading unlisted shares in India
The experts advise new inventors to seek pre-IPO shares in order to gain multiple advantages based on wealth and build a better portfolio. The reason behind such guidance is –
Exceptional Profits
The stock price either remains undervalued or overpriced for a protracted length of time as a result of the general lack of liquidity. When the market is undervalued, try to invest. Then, over time, you might recognise significant gains, particularly if the stock eventually lists and the company expects large returns.
No Prevailing Concerns
Unlisted stocks should not be traded and are not recommended for short-term investing. If you are looking for a great monetary benefit after investing in pre-IPO stock, you would have to wait for a certain period and wait until the stock price has reached your desired level.
Apart from these bits of advice, trading in unlisted shares can become more feasible if you are connecting with a professional team of unlisted share brokers. Experts from Stockify are well qualified to weave all the information regarding the strategy required for buying and selling unlisted shares. Our team at Stockify consists of well-qualified CA and financial experts that are certified to provide accurate information about the market flexibility and durability of existing pre-IPO. You can easily consult our professional team at Stockify and discuss through critical negotiations required while investing. Also, the experts make pre-IPO more accessible to maximise the investor’s wealth.
