Unlisted share investing is fast becoming a trend in India. Unlisted shares are those that belong to companies that are not yet listed on stock exchanges like NSE or BSE. Many savvy investors buy them to gain early access to high-growth companies (before they go public).
Unlike regular stocks, unlisted shares are traded privately through brokers and platforms. But how do you buy and sell them safely? Let me guide you through the process.
What Are “Unlisted Shares”?
Unlisted shares are stocks of companies that are not publicly traded. Such shares also include:
- Pre-IPO shares– shares of companies that are planning to go public.
- ESOP shares- stocks held by employees of an unlisted company.
- Private company shares– shares of firms that choose to stay unlisted or delist from an exchange.
Companies like OYO, Swiggy, and PharmEasy were once unlisted. Investors who bought early gained big when these companies went public.
How Can You Own/Buy Unlisted Shares?
Since unlisted shares are not available on stock exchanges, you need a trusted broker or platform like Bharat Unlisted. Here’s the step-by-step process:
- Find a Reputable Dealer
- Choose a platform that specializes in unlisted shares trading.
- Check their track record and market reputation.
- Check Share Availability and Pricing
- Unlisted shares don’t have a fixed price.
- Prices change based on demand, company valuation, and IPO expectations.
- Verify the Documents
- Ask for proper documentation before buying.
- Ensure the shares will be transferred to your demat account.
- Make the Payment and Receive Shares
- Once verified, complete the payment.
- The dealer will transfer the shares to your demat account.
How Can You Sell These Shares?
Selling unlisted shares is different from selling listed stocks. Since there’s no stock exchange, you need a buyer. Here’s how you can sell them:
- Find a Buyer or Broker
- Platforms like Bharat Unlisted help you connect with interested buyers.
- Agree on a Selling Price
- Prices depend on the company’s market performance and IPO plans.
- Get a fair valuation before selling.
- Complete Your Documentation
- Having proper documentation keeps you safe. It is also required for a secure and legal transaction.
- Transfer Shares and Receive Payment
- Once the buyer confirms, transfer shares from your demat account.
- Payment will be processed as per the agreement.
The Various Risks and Things to Consider
- Liquidity Issues
- Finding a buyer for your unlisted shares might take time.
- A trusted dealer helps speed up the process.
- IPO Uncertainty
- Not all unlisted companies go public.
- Research the company’s growth potential before investing.
- Pricing Variations
- Unlike listed stocks, unlisted shares don’t have a standard market price.
- Prices are driven by demand and company valuation.
Buying and selling unlisted shares in India offers unique investment opportunities. If done right, it can bring high returns. However, investing through trusted platforms like Bharat Unlisted ensures secure transactions and fair pricing.
Want to buy or sell unlisted shares? Start today with Bharat Unlisted and invest in India’s next big companies!