Investment Opportunity
in Pre-IPO Companies
(Unlisted Shares)

Unlisted shares are equity shares of companies, which are not listed on any recognized stock exchange in India (like BSE and NSE). Though these shares are not listed, a prospective investor can buy these shares from an unlisted market, which is a privately held market for these shares.

•  Unlisted shares are primarily issued by companies, which are at an early stage of business or may require additional capital for expanding their business.
• Unlisted shares of some big companies are also available in the market, as employees of these companies, who are holding ESOPs, want to exit due to their liquidity requirement.
• Issuance of unlisted shares help companies know the approximate valuation of their business in case they want to list in future.

•  It is a new avenue for Investors to invest for portfolio diversification.
• Availability in small ticket sizes.
• In an IPO many times an investor doesn’t get a confirmed allotment. So an investor who wants to participate in the growth of a particular company can do so by buying unlisted shares.

 It will be the same as Listed Stocks only. 

• Liquidity risk is one of the most important challenges in unlisted shares as it is privately traded.
• After the listing, unlisted shares are locked in for a period of 6 Months from listing date.

Prices will be updated on a weekly basis/Monthly basis and before deal, prices will be confirmed.

Except Some stocks, mostly all the stocks will be delivered within T+2 day after the payment. (Due to some technical issues it can be delayed)

The details will be mentioned in the deal confirmation letter.

After 6 months from the Listing date the shareholder can sell the shares.

 Yes, can be sold in Off market before IPO subject to buyer should be available.

• Unlisted shares held for less than 24 months are considered as short-term capital asset, and is taxed at respective income tax slab of an investor
• Unlisted shares held for more than 24 months are considered as long-term capital assets, and are taxed at 20% with indexation benefit.
• Unlisted shares held till Listing and sold after six months of listing, is considered as a long-term capital asset, and is taxed at 10% like a listed equity.

Since unlisted shares are available in dematerialized form only, investors need to have a Demat account either with CDSL or NSDL to buy these shares. Few shares may be available either in NSDL or CDSL Demat only.

0.015% Stamp duty (No other Charges).

Yes, a Deal Confirmation letter will be issued before the transaction.