The Future Outlook For Unlisted Shares As An Investment Option

The unlisted shares have proven to be a progressive part of the stock market ever since the past few years. The unlisted stock has quadrupled in size in the last years of its being in the stock market and helped investors make huge profits. Stats proved that the investor’s portfolio fetched a grand return on the interest of 25 to 35 per cent in 2019 alone, solely through trading in the best unlisted shares to invest in. The past few years have made unlisted shares price skyrocket and made prevalent investors interested in them. If you are someone who is willing to take chances and make easy money, then you should definitely buy unlisted shares. 

This blog will cover all the areas of the best unlisted shares to invest in and compare the stats of previous years to encompass unlisted shares price, so you can make up your mind whether to go forward and buy unlisted shares. Let’s begin!

Rewinding The Stock Market Of The Past Year

The Indian stock market has shown exponential growth in the last five years, more so that 26 penny stocks have defied gravity in 2019 and delivered up to 2,770 per cent returns. However, a steady drop has been noticed in the number of investors in the last six months for obvious reasons:

  1. A downward trend in the stock market, both listed and unlisted shares was witnessed due to regulations changes in investment strategies and individual risk tolerance in defence of the Russian-Ukraine war. Every country made primary changes in their system module which led to a substantial decline in the stock market. The investment market turned volatile and its reaction was a weaker global stock market, following the weeks of the Russian invasion.
  1. Several supervisory changes were seen, which could have contributed to the decline in the participants in the Indian trading market. Since RBI’s supervisory jurisdiction now extends to the financial system barring the Capital market institution and insurance sector, resilience in the investors was observed.
  1. Complex tax rules seemed to burden the participants, resulting in declining participation in the Indian Market. The convoluted tax rules lead to a fall in quantity traded and deviation in the revenue of the government, and the imperative result of these changes are lesser number of interested investors in the Indian stock market.

The last few months have not been the best in the stock market, but the unlisted shares investors did not meet any major damages because of the portfolio diversification and other advantages of buying the best unlisted shares to invest in. The budget 2023 also came with pleasant surprises for the small business owners, supporting the traders to invest in the unlisted shares. Check how the budget 2023 is going to affect your unlisted shares trading decisions:

Budget 2023 May Bring Tax Parity In Capital Gains On Unlisted Shares

Major speculations were made related to unlisted shares price before the 2023 budget was announced. Will the budget be beneficial for the trading world, or would the decline seen in the past few months steepen? All these speculations came to a halt when Union Minister Nirmala Sitharaman announced the measures of the stock market during the 2023 budget. The budget proved that the government is inclined to support the tech and startup ecosystem by including tax benefits for startups. The government, through budget 2023, aims to strike a balance between publicly held and privately held businesses. Previously the risk for investors investing in startups and unlisted companies was substantially more. There were reports that Budget 2023 would bring changes in the LTCG (Long Term Capital Gains) and STCG (Short Term Capital Gains) which were proven false. Still, the support for the startups and other alternative investments brought about positive hope for the unlisted shares investors. 

The unlisted shares are the shares of the company that are not traded on the stock exchange, and since they majorly include startups and private companies, the future of the best unlisted shares to invest in seems to be not much damaged or changed. The benefits that come associated with buying the best unlisted shares to invest in still remain. If you are willing to take risks, then you can assume greater returns after investing in the unlisted shares since there are always chances that the company you have invested in will go public in the future. Other benefits to buying unlisted shares are diversifying the investment portfolio and you stay free from paying STT (Security Transaction Tax) while trading in unlisted companies.

Connect With Stockify To Buy The Best Unlisted Shares To Invest In

The unlisted shares market has gained a lot of attention in the past few years due to positive gains, and if, after going through this data, you are convinced that buying unlisted shares will be in your favour, then Stockify is the right platform for you. We are an online trading platform that helps retail investors to access all blue chip stocks before they are listed in the Indian exchange market and make primary gains. If you are interested in making multifold gains, we provide you with the medium of investing early at low entry-level barriers. We have an experience of over ten years in the stock market with over 200+ crore transactions and 5000+ successful deals. We believe in happy and satisfied clients and focus on building long-term relationships by assisting beneficial solutions to the clients. 

Growth Opportunities in the Unlisted Market

For portfolio diversification, investors are interested in the unlisted markets for high-growth investment. Unlisted shares show less volatility in comparison to the listed market, as there is a limited number of buyers and sellers. Here are the top growth avenues investors look for in unlisted markets. 

Multi-Bagger Profits 

Investing into profitable unlisted companies before they go public offers high profits for investors. The concept is known as multi-baggers as it creates an early access advantage to gain more revenue after successful IPO launches. Due to this, there is a high preference for unlisted shares as a profitable investment option. 

Pre-IPO Opportunity 

Unlisted shares cater to multiple pre-IPO investment opportunities for investors, like high shares in uplifted valuation that increase unlisted share prices. The growth trend of tech-based startups is on the hit list of investors as it will derive a higher valuation after IPO and add value to the portfolio. 

IPO Exit and Acquisition Strategy 

It offers another lucrative opportunity to strategize an  IPO exit and even attract benefits from acquisition deals. Multiple unlisted companies are subsidiaries of giant parent companies that bring them high growth prospects and stability. So, investors gain an advantage by holding unlisted shares through buyout and acquisition deals later. 

Overall there are positive outlook for unlisted shares, investors find it a better investment option to leverage the profit on the portfolio. With thorough research and due diligence aspects, the unlisted market seeks wealth maximisation. 

So wait no more, and start investing!

Table of Contents

Unlisted shares investors can expect huge profit gains now after the changes adopted during the Budget 2023


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Piyush Jhunjhunwala
Piyush Jhunjhunwala
CA, CPA, Ex. PepsiCo, Reckitt, Coty
CEO & Founder
Dubai, UAE.
Rahul Khatuwala
Rahul Khatuwala
Ex. Wipro & Finaco Founder
Bangalore, India.