Pre-IPO Companies are private firms who intend to have a listing on the stock market leaderboard. In India that would mean being listed on the NSE or BSE or both. Once listed on the stock market, these companies are referred to as public listed companies. Such firms will have an Initial Public Offering (IPO) to invite investors to buy shares/stock of the company. So to put things in perspective, companies who have opened doors to investors, but have not yet been listed on the stock market and have not yet made an Initial Public Offering are referred to as Unlisted/Pre-IPO shares.
When it comes to Unlisted Pre-IPO shares, buying early is the key to maximizing profits. These are always available at a lower cost versus listed peers. So, by investing early in Unlisted Pre-IPO shares of a company, you stand a chance of multiplying your returns significantly once the company is officially listed on the stock exchange (NSE/BSE).
You can buy or sell unlisted stocks in a few simple steps.
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In very simple terms, unlisted shares refer to the stocks of the companies that are not listed on any stock exchange. Unlisted (Pre-IPO) shares, on the other hand, are public offerings to raise funds ahead of the IPO launch.
Unlisted (Pre-IPO) share trading is one of the most strategic ways to build wealth in the long term. Since these companies are not listed, their stocks are available at a lower price than their listed peers. One of the reasons why investors buy Unlisted (Pre-IPO) shares in India is Exponential Gains once the companies are listed.