A Guide to Unlocking Early-Stage Growth Opportunities In Unlisted Shares
By investing in unlisted company shares you can unlock a unique opportunity to become a stakeholder in high-growth companies before they enter the public markets. If you are seeking portfolio diversification and early access to promising businesses, unlisted share investments have become an attractive choice. In the article below, we explore what unlisted shares are, the benefits and risks involved, and how you can get started with this growing and attractive investment trend.
Better
Understanding Unlisted Company Shares
Unlisted company shares are equity shares
of companies that are not publicly traded on stock exchanges such as the NSE or
BSE. Such companies may be startups, private entities and/or even larger firms
planning to go public but are currently choosing to stay private. Buying and
selling unlisted shares happens privately as they aren’t yet listed on stock
exchanges, typically through specialized online platforms like BharatUnlisted.
Why Should You Invest in
Unlisted Shares?
- Tapping high-Growth
Potential: You are allowed to access high-growth
sectors before they become widely available on public exchanges by
investing in unlisted opportunities.
- Possibility of Big Returns:
Investing in unlisted shares often allows you to get in at a better price
pre-IPO thereby offering you a chance for substantial returns.
- Portfolio
Diversification: Investing in unlisted shares
enables you to diversify your portfolio beyond all traditional asset
classes and helps you add a layer of resilience to your portfolio.
How You Can Invest in
Unlisted Company Shares
The process of acquiring unlisted company shares requires a more
hands-on approach when compared to buying listed shares. Below are the steps
involved:
- Find a Trusted Platform: You can choose a reliable platform like Bharat Unlisted for all your unlisted investments. Such
platforms provide you access to vetted unlisted shares, transparent
pricing and in-depth company reports to make investing easier.
- Extensively Research the Company: You must analyze the financial health, growth potential, and
market position of the unlisted company in question. As these companies
are private, the information you get may be limited, which makes your due
diligence crucial.
- Complete your Purchase: After selecting the company, you must work with your chosen
platform or broker to complete the purchase of shares. The shares are
credited to your demat account upon your completing of the transaction.
How to Sell Unlisted
Company Shares
Selling an unlisted share investment
requires a different approach than selling publicly listed stocks. Below are
the steps:
- Find a Buyer: You’ll need to find a private buyer through platforms like Bharat
Unlisted in order to move ahead with your planned share sale.
- Transfer Your Shares: Once
you identify a buyer, your shares are transferred from your demat account
to theirs, with all paperwork managed by platforms like Bharat Unlisted.
- Correctly Time Your
Sale: You may prefer to hold onto their unlisted
shares until the company approaches an IPO or sell when the price gives
you a good return on investment.
The Risks and
Considerations In Unlisted Shares
- Low Liquidity: Unlisted shares don’t have a very active secondary market.
Therefore, you might find that selling these shares may take time.
- Price Volatility: Assessing
the fair value of unlisted shares can pose a challenge to any unlisted
investor.
- Regulatory/Tax
Implications: Your unlisted shares might differ
in their tax treatment from listed ones. It is advisable to consult a tax
advisor.
Why Choose Bharat
Unlisted for Unlisted Company Shares?
Bharat
Unlisted is a platform that simplifies investing in unlisted
company shares by providing a secure and highly transparent platform
for India’s top unlisted companies. We provide the services below:
●
Exclusive Unlisted Market Insights: We at BU
offer detailed information on promising unlisted companies and our team helps
you make informed choices.
●
A Clear Pricing Structure: Bharat Unlisted
allows you to make unlisted investments with no hidden costs or fees.
●
24x 7 Dedicated Support: Our dedicated team
provides assistance throughout the investment process (end-to-end).
Bharat Unlisted helps both first-time and
repeat unlisted investors easily explore and invest in exclusive opportunities
within India’s unlisted share market. While there are some risks involved, if
you have the right approach and trusted platforms like Bharat Unlisted, you can
successfully master the unlisted share market.
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