Sharescart Research Club logo ×
Screener Research Unlisted Startup Funding New IPO New
Invest In Pre-IPO Companies
  • What is Pre-IPO Investing
  • How Does It Work?
  • Best Investment Platform
Unlisted Shares Banner

Find Investment Ideas

Name

Phone


Importance Of Investing In Pre-IPO Companies

Earlier, not many people were aware of the opportunities one gets when it comes to investing in Pre-IPO companies and neither was it available to many. The only people that invested in Pre-IPO companies or growing businesses were high net-worth individuals, not everyone could afford to invest in these companies. Due to the limited awareness, the shares were sold at a higher price and since it is not listed on a public exchange, it is riskier as compared to listed shares but things are different now. Today, even a small investor or a common man with no investment background can invest in pre-IPO companies.

What Is Pre-IPO Investing?

Pre-IPO investing is when you invest in shares issued by a company before it signs the Initial Public Offering (IPO) to get listed on the stock exchange of India. Many companies and small businesses use this strategy as it helps them increase their financial base prior to starting the IPO process. During an IPO, the company gets listed on the stock exchange and the company shares are traded on the particular public exchange.

How Does It Work?

People invest in Pre-IPO companies and start-ups that have the potential to grow and earn profit and eventually when the company is doing great and has completed its IPO as well, the investors can wait for the right time and sell their shares at a proliferating profit.

To invest in pre-IPO shares, you need to find a broker or investment platform where you can find dealers through which you can buy pre-IPO shares of various companies. Once you express your wish to buy or sell the shares, the broker or dealer will give you the information on the businesses that you are seeking and at what price the shares are bought or sold for. The brokerage fee charged by the dealer to complete the transaction will also be disclosed to you. After agreement from both parties, the dealer will facilitate the transaction and the transfer of shares will take place.

In pre-IPO investing, you can invest according to your risk tolerance and financial situation, you are free to invest as much as you choose.

Advantages and Importance Of Investing In Pre-IPO Companies

There are various reasons why one should invest in pre-IPO companies, the following are a few reasons why it is important to invest in these companies.

The Opportunity to Earn Proliferating Profits

The main reason for investors and common people to even think about investing in pre-IPO companies is the returns received on the investment. If you invest at the right time and select the company after doing thorough research, you can get multi-bagger returns from it.

Offer Better Value For Money

Pre-IPO shares are offered at a discounted price as the company needs funds and not knowing how it will perform in the future after IPO, the company sells its shares at a discounted price. This is beneficial for investors as they can get the shares at a discounted price and if the company is doing very well after IPO, there are chances that may not even get the shares afterwards.

Price Negotiation

Pre-IPO shares have the potential for price negotiation because there aren't enough buyers and sellers. Therefore, if a shareholder wants to purchase or sell shares at a price other than the published price, they can speak with the broker directly.

Less Stressful

When compared to public shares, investing in pre-IPO shares can be less stressful because of the lower standard deviation rate. Since pre-IPO shares are less liquid, there is no need to worry about daily price swings.

Diversification

Shares that are listed and unlisted work well together.Investing in pre-IPO shares can reduce risk while diversifying the portfolio. In the event that an pre-IPO firm goes public, the stock exchange listing would give the company's investors an upper hand.

Disadvantages and Risks Involved In Investing In Pre-IPO Companies

No Assurance Of IPO

The investors who come to invest in pre-IPO companies expect the companies to opt for IPO sooner or later in the future. But one thing which is not considered is that there is no assurance that a company will definitely go for IPO. It is not necessary for a company to opt for IPO and get listed. The decision lies with the company and if the company thinks that an IPO would not benefit them it can opt out of that option.

Pre-IPO Shares are Less Liquid

Since there are a limited number of investors who invest in long-term investments, these shares are not very easy to deal in until and unless you know a genuine broker or dealer who invests in pre-IPO company shares.

Best Pre-IPO Investment Platform

If you are looking for the best pre-IPO investment platform? Look no further! You’ve come to the right place. At sharescart.com, we provide you with thorough research that is curated by passionate and experienced professionals for you. The platform offers you actionable data, news & market updates, and tools such as Sharescart screener and more. With Sharescart, you don't need to worry about anything. We help make your trading experience in pre-IPO shares as joyful and hassle-free as possible.

Our professional and expert team will help you clear any doubt that arises in your mind and assist you in every step of the process.

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 -1.7 1 6756 11
Reliance Retail Retailing 141.5 23 698659 1400
Orbis Financial Finance - Investment 64.1 13.7 3065 325

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

Check Health Insurance Premium

Check Health Insurance Premium

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.

whatsapp