Why Is The Unlisted Share Market Trending?

Investment has always been the centre of attention among potential investors in India. Bonds, gold, mutual funds, and other investment options have kept investors enticing about the return on their investment. However, the popularity of the grey market in India got so much hyped that every investor wants to invest in the unlisted shares. But, listed companies have always ruled the share market, and new-age companies are also becoming tough contenders to reach the threshold for being listed on the stock exchange. Lately, boAt, Chennai Super Kings, Lava International, Mohan Meakin, Bira91, Tata Technologies, and many other leading companies have gained popularity in the market for offering unlisted shares. This is the reason why most investors are looking for unlisted shares price India to invest in. 

In this blog, we will discuss why the unlisted share market is trending. So, stride along with us and read the blog till the end. 

Synopsis About Unlisted Shares 

Unlisted shares are the shares of the company which has not yet been listed on the stock exchange. These companies are majorly startups or already established ones that haven’t listed on a stock exchange or gone public. The shares of these companies are traded over the counter between two people who know each other or through a broker who deals in unlisted shares. Being an investor in these companies is like being a member of an exclusive club or a growing company, where you support these companies by becoming a part of their success journey. Since pre-IPO companies are on the verge of going public or listed on the stock exchange, early investment in their unlisted shares can offer a high return on the investment. 

Top Notch Reasons Why Unlisted Share Market Is In Trend

Since investors always look for golden opportunities to invest and earn high returns on their investments, unlisted shares come with their own risks and awards, which have attracted investors lately. Let’s look at the major reasons why the unlisted shares market is in trend: 

Big growth opportunities 

In India, startup companies are making a significant impact with their power-packed performance. Unlisted shares in growing or early-stage companies offer bigger financial rewards than those of established listed companies on the stock exchange. Such companies are in the early stages of growth, and if they become successful, their value will rise tremendously, like boAt and CSK. 

Diversification of investment portfolio

Investment portfolio diversification is another reason why the unlisted share market is in trend. Including unlisted shares in your investment portfolio can help diversify your risk. Compared to listed stocks or conventional investment options, pre-IPO stocks may have different risk profiles and growth trends. So, investors look for such options through which they can lower the total risk of their investment portfolio, and unlisted shares offer this opportunity to them. 

Access to promising startups 

Today, investors look for companies that can give them an opportunity to be a part of their growth and success journey. Promising startups give them a cutting-edge expansion to grow their investment. Before the startups or IT companies go public, they grab a mass sizable market share to attract investors. 

Profitable Pre-IPO Investment 

The early investment in unlisted shares gives investors an excellent opportunity to participate in Initial Public Offerings (IPO). As pre-IPO shares are often made available to certain investors, which include investors who bought the unlisted shares from the companies that intended to go public. These investors can exit the company at a higher valuation as soon as the company goes public. 

High return on investment 

As compared to listed companies, unlisted shares have very low liquidity and frequently get overpriced or underpriced for a particular period based on the company’s performance. Therefore, as an investor, you can make a flabbergasting return if you buy unlisted shares in India when they are available at a cheap price. 

The Top Unlisted Share Companies You Can Invest In 

If you’re enchanted by the unlisted share market and planning to invest, then you must know about the best-unlisted share companies in India to make a wise decision. There are many pre-IPO companies available in India that give investors an opportunity to earn high ROI. The range of unlisted share companies includes Chennai Super Kings, Hexaware Technologies, Lava International, NSE, Capgemini Technology, Orbis Financial Corporation, Cochin International Airport, HDB Financial Services, Sterlite Power Transmission, Tata Technologies, Studds Accessories Limited, etc. From retail to finance, healthcare, technology, energy, retail, and real estate, you can invest in different industries or companies. 

If you’re new to the stock market and searching for the best-unlisted share broker in India, Stockify should be your go-to option. Being a leading stock broking platform, Stockify has a team of expert brokers who help potential investors with buying and selling unlisted shares in India. Speak to the brokers and start your trading journey now.