Firstly let’s understand that what exactly are Unlisted Shares are basically those shares which are traded in the Primary Market.They are also known as private shares or closely held shares.
They are the shares of a company that are not listed or traded on a public stock exchange.Unlisted shares are typically held by a limited number of investors, including founders, early-stage investors, venture capital firms, and other private investors. These shares are often associated with startups, private companies, or family-owned businesses that have not yet undergone an initial public offering (IPO) to become publicly traded.
PROS
- Access to Innovative Startups: By investing in unlisted shares, investors can participate in funding innovative startups and support groundbreaking technologies and ideas. This not only provides an opportunity for financial returns but also the satisfaction of being part of a company’s growth journey.
- High Profits: Despite the risks, investing in unlisted shares can offer potential for high returns, especially if the company experiences significant growth or is acquired at a favorable valuation.
- Diversification of risk: Unlisted shares offer different risk dynamics and can be complementary to someone who is invested in listed shares. They can be a good means to diversify the portfolio. Unlisted shares offer similar to better return potential as compared to that of listed shares.
- Negotiation Power: Investors in unlisted shares may have an opportunity to negotiate favorable terms and conditions, including the equity stake, governance rights, and exit strategies, depending on the level of investment and the company’s growth prospects.
- Lower volatility: Due to the illiquid nature of the shares, there are considerably lower volatility concerns. The standard deviation which is the technical term of volatility is much lower than listed shares.
CONS
- Long Term Investment : Investments in unlisted shares often require a long-term commitment. Realizing significant returns may take several years, and investors need to be patient and have the capacity to hold their investment for an extended period.
- Limited company specific data: Disclosure norms on unlisted companies are relatively relaxed and as a result the unlisted companies often provide limited news and information about their current affairs. As a result, it becomes difficult for investors to keep a track of the growth of the company they have invested in.
- Higher Risk: Investing in unlisted shares carries higher risk compared to publicly traded stocks. Startups and private companies have a higher failure rate, and the chances of losing the entire investment are more substantial. Investors need to be prepared for the possibility of losing their invested capital.
- Valuation:One of the common risks in the unlisted market is the selling of unlisted shares at very high prices. Fraudulent dealers may sell shares at inflated valuations in order to earn a higher commission. As an investor, it’s
- important to be careful when buying unlisted shares and make sure that you’re getting a fair price.
Why Bharat Invest?
Bharat Invest is India s leading Pre IPO Share Marketplace. Bharat Invest helps you to invest in companies before their IPO ( with as low as 25K). As Investing in Private equity is accessible to all, Bharat Invest provides you with free consultation to do so.
It has successfully satisfied over 17,000+ investors with 100% satisfaction rate. It also provides 100% payment safety with Escrow accounts.Investors have successfully invested more than INR 125 Cr+ through this platform. It is Fast-Secure-Reliable as You get delivery of shares within 24 hours of payment.
We don’t charge with any Hidden Charges,All you have to pay is the price of unlisted shares.There is no Extra charges or brokerage. We also provide Low Ticket Size you don’t have to invest Crores in private companies with us , you can invest as low as 25k.
Bharat invest is a secure trading platform designed to help you make the best trades available and make better decisions. With liquidity from thousands of investors, this online marketplace will give you access to unlisted stock, allowing for quick and easy buying or selling of shares in companies that are not listed on open markets. They provide extensive market information so you can stay informed about price movements, trade trends, company news, dividends paid out by issuers and much more – giving you an edge when it comes to making powerful investment moves.