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A Kick In Pre IPO Share: Is It Time To Switch To Unlisted Share Market?



Amid the variabilities in the market, investors continue to trade in unlisted shares or pre-IPO stocks of private companies. Valuation shared by NSE (National Stock exchange) shows an [80 per cent surge in investors for the past six months](https://economictimes.indiatimes.com/markets/stocks/news/nse-unlisted-shares-soar-80-in-six-months/articleshow/82148514.cms?from=mdr). The evolving situation triggered the premium offers on pre-IPO shares. Evidently, the investors are offered a minimum premium rate of 32% on unlisted shares.

![](https://i.imgur.com/eoaz1Pk.jpg)


For any organisation, entering the stock market could be a complicated process. Once the equity portion of any organisation is registered on the BSE (Bombay Stock Exchange) or NSE (National Stock Exchange), investors can easily trade through the shares and use the organisation’s financial instruments for profit earning. Trading stocks through listed shares is a transparent process where investors can easily monitor the profits, revenue and company's market value.  

However, the changing scenarios have made it clear that investors are leaning towards unlisted shares. As a matter of fact, investing in pre-IPO stocks is rather easier because private companies do not have to classify themselves in any category, nor do they get registered under NSE or BSE. Thus the unregistered private companies provide unlisted shares to the investors and increase their cash flow efficiently. With better premium rates and increased returns, investors put more resources and effort into buying unlisted shares. 

**Why Are Investors Drawn Towards Unlisted Shares? **

In the beginning phase of any organisation, it is not easy to get listed shares in the stock market. Particularly when a company is developing and requires a better cash flow, they tend to grow and produce stable income through unlisted shares. For instance, companies like- Paytm, Ola, Jio etc. started with unlisted shares, and investors showed a keen interest in their unlisted shares price. With time, these companies started registering tremendous growth financially and are popular among the general public. Usually, organisations that start by providing unlisted shares get registered as soon as they fall under the guidelines of NSE and BSE. Moreover, the companies make their profit, revenue and equity public to attain transparency with the investors. 
![](https://i.imgur.com/6w2Agpg.jpg)


On the other hand, investors are more focused on unlisted shares as they provide better returns when left as a long-term investment. These solid returns can be accessed as cash after 24 months. With unlisted shares or pre-IPO shares, there are tons of possibilities for the inventors in terms of exposure, building a better portfolio and financial benefit. Other benefits leveraged by investing in unlisted shares are: 

**High-Value Investment:** It is possible to earn good returns on every investment because the [pre-IPO shares](https://stockify.net.in/pre-ipo-unlisted-shares/) lack liquidity and could be kept for a prolonged period. 

**Financial Peace:** Unlike the instability in the listed equity shares, the unlisted shares are way easier to invest in without worrying about price fluctuations. 

**Better Investment Growth:** The unlisted shares require small-scale investment,  and it is easy to generate funds and growth in the investment process. 

Stockify is a leading platform of [unlisted shares brokers](https://stockify.net.in/buy-unlisted-shares/) that allow investors to buy unlisted shares in India and eliminate any risk factor while ensuring capital growth. 