Investors constantly explore new opportunities to diversify their portfolios and maximize returns. One such avenue is unlisted shares—equity in companies not publicly traded on stock exchanges. These shares offer access to early-stage businesses with high growth potential, making them an attractive option for investors. But what exactly are unlisted shares, and how can platforms like Precize simplify investing in them? Let’s find out.
What Are Unlisted Shares?
Unlisted shares, also known as pre-IPO shares, are equities in companies that are not listed on stock exchanges like NSE or BSE. These shares are traded privately through brokers, investment platforms, or intermediaries.
Previously, investing in unlisted shares was limited to institutional investors such as venture capital firms and private equity funds. However, with evolving financial markets, retail investors now have the opportunity to tap into this asset class.
Why Are Unlisted Shares Gaining Popularity?
As per sources, the private equity market has grown significantly, with total assets surpassing $3.6 trillion. This expansion is fueled by strong returns, increasing private investments, and the rapid growth of privately held companies. Since 2005, private equity investments have grown at an annual rate of 14%, often outperforming traditional asset classes.
Key Benefits of Investing in Unlisted Shares
1. High Growth Potential
Unlisted shares can yield substantial returns, particularly when the company goes public. Some examples include:
- Tata Technologies: Share price rose by 156%, from ₹469 in 2022 to ₹1,200 in 2023.
- Waaree Energies: Experienced a 311% increase, climbing from ₹620 in 2023 to ₹2,550 in 2024.
2. Early Access to Promising Companies
Early-stage investments can generate exponential returns. Examples include:
- NSE (National Stock Exchange): NSE unlisted share price increased from 256%, from ₹1,700 in January 2021 to ₹6,049 in August 2024.
- Orbis Financials: Share increased from ₹65 in February 2022 to ₹405 in September 2024.
- HDB Financial Services: Share Increased from ₹630 in September 2022 to ₹1,304 in November 2024.
- BoAt unlisted share price : BoAt share price increased from 13.88%, from ₹1225 in January 2021 to ₹1395 in August 2024.
- Polymatech unlisted share price :The Polymatech unlisted share price increased from 47.56% from ₹410 in July 2023 to ₹605 in August 2024
3. Portfolio Diversification
Including unlisted shares in your portfolio reduces exposure to stock market volatility and provides stable, long-term growth opportunities. Since private markets are less influenced by daily trading activity, they often experience lower volatility than publicly traded stocks.
4. Exclusive Investment Opportunities
Unlisted shares provide access to startups and established private firms before they go public, offering unique opportunities unavailable in the public market.
How to Invest in Unlisted Shares
Navigating private markets may seem complex, but platforms like Precize simplify the process. Here are the primary ways to invest in private companies:
1. Direct Investment in Startups
Some startups offer shares directly during funding rounds. This approach often requires substantial capital and thorough due diligence.
2. Through Intermediaries or ESOP Sales
Unlisted shares can also be purchased from intermediaries or employees selling their Employee Stock Ownership Plans (ESOPs).
3. Via Investment Platforms
Platforms like Precize provide an accessible and efficient way to invest in unlisted shares. With a minimum investment of ₹10,000, Precize offers opportunities across 150+ private companies, ranging from startups like Boat to established players like Tata Capital.
How Precize Simplifies Unlisted Share Investments
Precize is a trusted platform that streamlines private market investments. Here’s how it enhances the investor experience:
1. Access to 150+ private companies
Precize provides access to over 150 private companies, offering real-time stock price updates for companies like boAt, Taparia Tools, and Vikram Solar. Investors can check the latest Taparia Tools share price, Vikram Solar share price, Polymatech share price, boAt share price, and more, along with the latest news on private companies, directly on the platform.
2. In-Depth Research Reports
The platform offers comprehensive reports that include industry analysis and peer comparisons, helping investors make informed decisions.
3. Historical Price Data
Investors can assess price trends to identify high-growth opportunities.
4. Market Updates
Precize keeps investors updated with insights on private markets, industry trends, and pre-IPO news.
5. Seamless Transactions
Buying and selling unlisted shares is simplified through a 3-step process. Investors can also sell their unlisted shares as Precize facilitates a buyer for the shares in 24-48 business hours.
Steps to Invest in Unlisted Shares via Precize
- Choose a Company: Select from 150+ private firms based on your investment goals.
- Add Funds: Add funds via UPI or bank transfer into your Precize account.
- Place an Order: Confirm your investment and place an order for unlisted shares. Shares are transferred to your depository account that is NSDL or CDSL within 24-48 business hours.
Risks to Consider
While unlisted shares offer attractive returns, they also come with risks:
- Limited Liquidity: These shares are not publicly traded, but Precize enables easy liquidation within 24-48 business hours.
- Lower Transparency: Private companies disclose less financial data than public firms.
- Uncertain Exit Timeline: IPO timelines are unpredictable, which may affect investment horizons.
To mitigate these risks, Precize provides detailed research reports, enabling informed decision-making.
Final Thoughts
Unlisted shares offer an exciting investment avenue, providing strong returns, early access to high-growth companies, and portfolio diversification. However, they also require careful evaluation due to inherent risks.
Platforms like Precize make investing in unlisted shares more accessible through research-backed insights and an easy-to-use platform. Whether you are an experienced investor or just starting, unlisted shares can diversify your portfolio, and Precize is here to guide you every step of the way.
Reserve your access and start your investment journey today!
Disclaimer: This information is for general awareness only and should not be considered investment advice. The companies mentioned are for example purposes and do not represent recommendations. Investors are encouraged to perform their own research and consult financial, legal, and tax professionals before making any investment decisions.