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Buying Of UNLISTED SHARES
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How To Buy Unlisted Shares

Many investors and ordinary citizens have been buying shares of unlisted companies and have gained multifold returns from it. One can invest in unlisted shares to diversify their portfolio and in doing so they can reduce the risk occurring from investing in the same type of investing instrument.

If you are someone who wants to invest in unlisted shares, we bring to you everything you should know about unlisted shares and the process involved in buying of the shares. 

Trading Platform And It’s Liquidity

The first and foremost thing that would cross one’s mind before buying unlisted shares is where is it traded and can it be liquidated easily? As we all know unlisted shares cannot be traded on the stock exchange as they are not listed on it. These shares are traded on the over-the-counter marketplace and can be bought and sold easily through any trusted dealer such as sharescart.com. The shares can be easily liquidated if you know the process and a trusted platform or dealer in the market.

Advantages Of Buying Unlisted Shares

There are various reasons why one should invest in unlisted companies, the following are a few reasons why you should invest in these companies:

Earn Proliferating Profits

The returns on investment are the primary factor that causes both professional investors and regular people to consider making an investment in an unlisted company. You can earn multi-bagger profits if you invest at the proper time and choose the company after completing extensive research.

Better Value For Money

Unlisted shares are sold at a reduced price by the company because it is through this that the company raises  and since it is unsure of how it will fare after the IPO, it sells its shares at a lower price. Investors benefit from this since they can buy the shares at a reduced cost.

Price Bargaining

Unlisted shares may be priced differently since there aren't enough buyers and sellers to go around. Therefore, a shareholder may speak with the broker directly if they wish to buy shares at a price other than the one disclosed to them.

Reduced Stress

Investing in unlisted shares can be less stressful than investing in public shares because of the lower standard deviation rate. There is no need to be concerned about daily price fluctuations in unlisted shares.

Diversification of Portfolio

Listed and unlisted shares complement one another well.

Pre-IPO stock purchases help diversify a portfolio while lowering risk. The stock market listing would provide the company's investors the advantage if it decides to go public.

Disadvantages And Risk Of Buying Unlisted Shares

No Assurance Of IPO

Investors who come to invest in unlisted companies anticipate that those companies will choose to become public sooner or later. However, one factor that is overlooked is the fact that there is no guarantee that a firm will choose to get listed. The choice is up to the business, they may decide against an IPO if they believe that it would not be advantageous.

Pre-IPO Shares are Less Liquid

These shares are not very easy to deal in unless you know a reliable broker or dealer who invests in unlisted shares because so few investors choose to make long-term investments.

Hard To Track Share Prices

There is no daily fair market price for these companies because they are not listed on any exchange, thus a fair value must be determined.

The information on unlisted companies is not freely available everywhere, only a few platforms like Sharescart offer you detailed information to keep you updated.

Best Practices To Keep In Mind

Avoid investing on suggested shares

It is absolutely essential not to indulge in buying unlisted shares just by listening to suggestions from people and loved ones. Research is essential if you are looking to buy unlisted shares. People may suggest any company but it doesn’t have to be right. Before buying unlisted shares or any shares for that matter, It is important to do thorough research.

Study the company's operations

It is important to do an in-depth study on the company you want to invest in. It is advised to discover the management's long-term goals for the business and examine the company's income sources, revenue mix, and cash flow risk. It is necessary to evaluate the value proposition of the company and assess its advantage over competitors in the sector.

Opt For Futuristic Company

It is advised to examine the business's expansion strategies and funding sources.Examine the company's plan to expand and evaluate the prospects for the future. Unlisted shares gives you an option to choose from startups that have the potential to fare well in the future and bring in good returns.

Know about the company’s market standing

Knowing where the company stands in the market and amongst the competitors will give you a fair idea if the company is good enough to invest in. You can also check if other big investors are investing in the particular company or not or if it is backed by a successful company or promoter.

Conclusion

When you understand the process, buying unlisted shares is not that difficult. You won't need to worry about anything with Sharescart. If you are satisfied with the buyer we have found for your shares, Sharescart will proceed with the trade. We work to make your interaction with us as enjoyable and hassle-free as we can.

Any questions you may have will be answered by our knowledgeable staff, who will also guide you through each step of the procedure.

Top Unlisted Companies & InstaBuy Companies

Sell or Purchase Share (Tentative Price)

Fundamental Analysis

Company Industry Stock P/E P/B Company rating MCAP (in Cr.) Current Price
Pharmeasy e-Commerce -1.9 1.1 7678 12.5
Reliance Retail Retailing 141.5 23 698659 1400
Orbis Financial Finance - Investment 51.7 11.1 2471 262

Top Recommendations

Hexaware Technologies

It is a leading global provider of BPO and IT services. Hexaware Technologies Limited provides IT consulting, software development, and business process services.

Unique Features

  • Delisted Company
  • Undervalued Stocks
  • Likely to Grow 2x

API Holdings

Incorporated in 2019, The company operates a consumer healthcare app called PharmEasy that enables the home delivery of pharmaceutical products.

Unique Features

  • Market Leader
  • Available now at 66% discount
  • QIB's invest at Rs.100 per share.

Sterlite Power

Sterlite Power began on 5th May 2015 and is headquartered in Delhi. It is a leading developer & solution provider in integrated power transmission.

Unique Features

  • Likely to grow in 4-5 years
  • Part of Vedanta Group
  • Decent Valuation

Signify Innovation

Incorporated in 2015. Signify is into the manufacturing of electric lights and light fixtures for consumers and professionals.

Unique Features

  • Lighting Industry
  • Part of Philips Group
  • Decent Valuation

Chennai Super Kings

CSK is a subsidiary brand of India Cements. This company is quite popular in India as it known for its cricket team.

Unique Features

  • Most loved IPL Team
  • LIC holds more than 6% Shares
  • One of the best businesses

Elcid Investment

Elcid Investments Limited was incorporated on 3 December 1981 in Mumbai. It is a Non-Banking Finance Company registered with the Reserve Bank of India.

Unique Features

  • NBFC
  • Listed Company
  • Book Value is Rs.6,16,440.

Studds Accessories

STUDDS is a leading manufacturer of motorcycle accessories and helmets. They become the largest helmet manufacturer (two-wheeler) in the world.

Unique Features

  • No.1 Brand of Helmets
  • Having business in 20+ countries
  • Trustworthy Management

Mohan Meakin

Mohan Meakin manufactures alcoholic beverages such as rum, whisky, beer, etc., and non-alcoholic beverages like apple juice, mineral water, etc.

Unique Features

  • Delisted Company
  • Decent Valuation
  • Popular alcoholic (Old Monk)

Orbis Financial

Orbis is recognized as a leading player in the Financial Services Industry, providing Securities Services since 2009 to FDI, Corporate, HNI's.

Unique Features

  • leading player
  • Decent Valuation
  • Excellent growth

Schneider Electric

Schneider Electric President Systems Limited is a designer, manufacturer and supplier of customized enclosure systems for over 30 years.

Unique Features

  • Delisted Company
  • Undervalued Stocks
  • In FY22, 45% growth in Sales

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Updated News/Videos

Buying and Selling Unlisted Shares
PharmEasy to Raise
API Holdings
SterLite Power
OYO Turned
Fino Pay Tech
ORBIS
OYO Filed
Five Star Financial Analysis
Sterlite Power Transmission Limited
Hexaware Announces Second Interim Dividend 2022
Complete Analysis On ELCID Investments Limited
Bira 91 Acquires The Beer Cafe
Chattisgarh Govt Partners With Tata Technologies To Develop Technological Hubs
Lava International Latest Updates
Capgemini Acquires A UK Based Firm Named
Reliance Retail Launches First In House
OYO To Add 400 More Properties In The Leisure Segment
MobiKwik To Be Fully Profitable By FY23, 100% Commitment On The IPO Front.
Sterlite Power To Enter India's Renewables Business.
Common Mistakes While investing in Unlisted Shares
Reliance Retail Launches Athleisure Brand Xlerate On AJIO Business
Five Star Business Finance Ltd IPO Details
Tata Technologies Upcoming IPO News
NSE To Sell Its Entire Stake In Market Simplified
What Is Right Issue Of Shares?
Bira 91 Raises $70mn From Kirin Holdings
CIAL To Launch New Terminal Soon
Orbis Financial Corporation Limited Announced the Right Issue of Equity Shares in FY23

Success Stories

How Your Money Can Grow With Us

ICICI Prudential

Pre IPO Price:
130
IPO Price:
334
Listing Price:
310
Absoulte return 138%

1 Lac Invested in ICICI Prudential pre-ipo turned into 2.3 Lac after listing.

ICICI Lombard

Pre IPO Price:
400
IPO Price:
661
Listing Price:
680
Absoulte return 70%

1 Lac Invested in ICICI Lombard pre-ipo turned into 1.7 Lac after listing.

HDFC Life

Pre IPO Price:
210
IPO Price:
290
Listing Price:
344
Absoulte return 64%

1 Lac Invested in HDFC Life pre-ipo turned into 1.6 Lac after listing.

AU Small Finance Bank

Pre IPO Price:
175
IPO Price:
358
Listing Price:
597
Absoulte return 241%

1 Lac Invested in AU Small Finance Bank pre-ipo turned into 3.4 Lac after listing.

RBL Bank

Pre IPO Price:
60
IPO Price:
225
Listing Price:
301
Absoulte return 402%

1 Lac Invested in RBL Bank pre-ipo turned into 5 Lac after listing.

BSE

Pre IPO Price:
200
IPO Price:
806
Listing Price:
1069
Absoulte return 435%

1 Lac Invested in BSE pre-ipo turned into 5.3 Lac after listing.

CDSL

Pre IPO Price:
60
IPO Price:
150
Listing Price:
261
Absoulte return 335%

1 Lac Invested in CDSL pre-ipo turned into 4.3 Lac after listing.

Nazara Tech

Pre IPO Price:
545
IPO Price:
1101
Listing Price:
1990
Absoulte return 265%

1 Lac Invested in Nazara Tech pre-ipo turned into 3.6 Lac after listing.

Dmart Avenue

Pre IPO Price:
280
IPO Price:
300
Listing Price:
616
Absoulte return 120%

1 Lac Invested in Dmart Avenue pre-ipo turned into 2.2 Lac after listing.

Reliance Retail Ltd

Price in 2019:
450
Current Price:
3250
Absoulte return 622.22%

1 Lac Invested in Reliance Retail Ltd pre-ipo turned into 7.2 Lac.

Tata Technologies

Price in 2019:
1100
Current Price:
6350
Absoulte return 477.27%

1 Lac Invested in Tata Technologies pre-ipo turned into 5.7 Lac.

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