15 Days Price Change
OYO Pharmeasy NSE India BOAT Nayara Energy Greenchef Appliances Ltd Tata Capital Polymatech Electronics Pvt Ltd
Summary
Unlisted shares, traded in the over-the-counter market, offer high growth potential and diversification but come with risks like lower liquidity and regulatory complexity. Read this to know about its types, working & legalities.
Shares that are not listed on a stock exchange, such as the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE), are known as unlisted shares. These financial instruments, commonly referred to as over-the-counter securities, are traded discreetly in the over-the-counter market. The reason people invest in these shares is that they offer tremendous growth opportunities.
Limited Liquidity: Because there are fewer buyers and sellers of unlisted shares than public equities, it is more difficult to buy and sell them.
Regulations: They are subject to the provisions of the Securities and Exchange Board of India (SEBI) and the Company Law, even though they are not as regulated as listed equities.
Unlisted Company Examples: Among the well-known brands in the unlisted market are PharmEasy, OYO, boat, and Tata Capital.
Unlisted shares come in various forms, some of them are listed below:-
1️) Pre-IPO Shares – Companies planning to go public soon (e.g., OYO, bOAT).
2) ESOP Shares – Employee-owned shares sold before IPO (e.g., Flipkart, Paytm).
3) VC/PE-Backed Shares – Startups backed by investors (e.g., BYJU’S, PharmEasy).
4) Delisted Shares – Previously listed but now unlisted (e.g., Essar Oil).
5) Unlisted Subsidiaries – Private arms of listed firms (e.g., HDB Financial).
6) Startup Shares – Early-stage companies with high growth potential (e.g.,Greenzo).
Shares that are not listed on stock exchanges such as the NSE or BSE are known as unlisted shares, and they are sold privately through brokers, investment firms, online platforms (sharescart) or direct deals with shareholders. They have lower liquidity and higher risk, but their pricing are determined on demand, company valuation, and future IPO potential. Investors usually exit when the company goes public (IPO) or through private buyouts.
Example: Before its IPO, NSE (National Stock Exchange) shares are traded in the unlisted market. Early investors who bought at lower valuations have witnessed close to 104% returns when its price surged from Rs. 956 to Rs. 1950 ahead of its expected listing.
Investing in unlisted shares comes with its own pros and cons, here are some of them:-
- High Growth Potential – Early investment in emerging companies like Polymatech Electronics can yield multifold returns.
- Pre-IPO Advantage – Buying before listing can lead to huge gains if the company goes public. Ex- Swiggy
- Portfolio Diversification – Helps reduce risk by investing in private markets
- Less Market Volatility – Unlisted shares are less affected by the listed market fluctuations.
- Lower Liquidity – Difficult to buy/sell quickly due to lot size & less investor's activity.
- Higher Risk – No fixed regulations compared to listed stocks, making them little risky.
- Uncertain Exit Route – Returns depend on IPO, buyouts, or private sales.
- Price Transparency Issues – No public price discovery, valuations can vary among brokers.
SEBI & Company Act Regulations – Unlisted shares fall under the Companies Act, 2013 however are not under SEBI’s direct oversight for Pre-IPO shares.
Eligibility to Invest – Open to individuals, HNIs, institutional investors, and private equity firms.
Mode of Transaction – Bought through private deals, brokers, investment firms, or online platforms (sharecart) and settled via Demat accounts.
Taxation Rules –
- STCG (if sold within 24 months) – Taxed as per income slab
- LTCG (after 24 months) – 12.5% without indexation benefit.
Lock-in Period Post-IPO – If a company goes public, pre-IPO investors face a 6-month lock-in period as per SEBI guidelines.
RBI Restrictions for Foreign Investors – Foreign investors need RBI approval for unlisted shares under FEMA regulations.
Investing in unlisted shares offers significant growth potential and diversification benefits, as seen with companies like Swiggy and HDB Financial Services. However, these investments come with notable risks, including lower liquidity and uncertain exit routes. While unlisted shares can provide substantial returns, especially pre-IPO, they require thorough due diligence, understanding and their tax implications.
Sell or Purchase Share (Tentative Price)
| Company | Industry | Stock P/E | P/B | Company rating | MCAP (in Cr.) | Current Price |
|---|---|---|---|---|---|---|
| Pharmeasy | e-Commerce | -2.1 | 2 | 5302 | 8.3 | |
| Reliance Retail | Retailing | 141.5 | 23 | 698659 | 1400 | |
| Orbis Financial | Finance - Investment | 38.3 | 7.9 | 5417 | 445 |
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
Incorporated in 2019, The company operates a consumer healthcare app called PharmEasy that enables the home delivery of pharmaceutical products.
Unique Features
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
Incorporated in 2015. Signify is into the manufacturing of electric lights and light fixtures for consumers and professionals.
Unique Features
CSK is a subsidiary brand of India Cements. This company is quite popular in India as it known for its cricket team.
Unique Features
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
STUDDS is a leading manufacturer of motorcycle accessories and helmets. They become the largest helmet manufacturer (two-wheeler) in the world.
Unique Features
Mohan Meakin manufactures alcoholic beverages such as rum, whisky, beer, etc., and non-alcoholic beverages like apple juice, mineral water, etc.
Unique Features
Orbis is recognized as a leading player in the Financial Services Industry, providing Securities Services since 2009 to FDI, Corporate, HNI's.
Unique Features
Schneider Electric President Systems Limited is a designer, manufacturer and supplier of customized enclosure systems for over 30 years.
Unique Features
How Your Money Can Grow With Us
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IPO Price: 334 |
Listing Price: 310 |
1 Lac Invested in ICICI Prudential pre-ipo turned into 2.3 Lac after listing.
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IPO Price: 661 |
Listing Price: 680 |
1 Lac Invested in ICICI Lombard pre-ipo turned into 1.7 Lac after listing.
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IPO Price: 290 |
Listing Price: 344 |
1 Lac Invested in HDFC Life pre-ipo turned into 1.6 Lac after listing.
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IPO Price: 358 |
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1 Lac Invested in AU Small Finance Bank pre-ipo turned into 3.4 Lac after listing.
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IPO Price: 225 |
Listing Price: 301 |
1 Lac Invested in RBL Bank pre-ipo turned into 5 Lac after listing.
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IPO Price: 806 |
Listing Price: 1069 |
1 Lac Invested in BSE pre-ipo turned into 5.3 Lac after listing.
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IPO Price: 150 |
Listing Price: 261 |
1 Lac Invested in CDSL pre-ipo turned into 4.3 Lac after listing.
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IPO Price: 1101 |
Listing Price: 1990 |
1 Lac Invested in Nazara Tech pre-ipo turned into 3.6 Lac after listing.
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IPO Price: 300 |
Listing Price: 616 |
1 Lac Invested in Dmart Avenue pre-ipo turned into 2.2 Lac after listing.
| Price in 2019: 450 |
Current Price: 3250 |
1 Lac Invested in Reliance Retail Ltd pre-ipo turned into 7.2 Lac.
| Price in 2019: 1100 |
Current Price: 6350 |
1 Lac Invested in Tata Technologies pre-ipo turned into 5.7 Lac.
