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Exploring Unlisted Shares: Growth, Risks, and How Precize Can Help Navigate the Market

Unlisted shares, or pre-IPO shares, are stocks of companies that have not been listed on stock exchanges such as NSE or BSE. Since they are not traded on exchanges, buying and selling these shares occur in private markets through brokers or platforms specializing in unlisted securities.
Initially, unlisted shares were primarily accessible to institutional investors like venture capital firms, private equity funds, and investment banks. This limited availability kept the market relatively exclusive. However, in recent years, high-net-worth individuals (HNIs) and celebrities have shown increased interest in unlisted shares. Prominent figures such as cricketer Rahul Dravid, filmmaker Karan Johar, and former cricketer Zaheer Khan have reportedly participated in this market. Their involvement has brought more visibility, drawing attention from a broader investor base.

Why the Interest in Unlisted Shares?
Investing in unlisted shares presents several advantages, making them increasingly appealing to investors. Let’s explore these benefits with real-life examples:

1. Growth Potential

Unlisted shares can deliver substantial returns if the issuing company performs well and eventually goes public. Examples include:

Tata Technologies: Its valuation surged by 156%, from ₹469 in 2022 to ₹1,200 in 2023.
Waaree Energies: Recorded impressive growth of 311%, from ₹620 in 2023 to ₹2,550 in 2024.

2. Early-Stage Investment Potential

Investing early in promising companies can lead to significant gains. Consider these examples:

NSE: NSE unlisted share price appreciated by 256%, from ₹1,700 in January 2021 to ₹6,049 in August 2024.
Orbis Financials: Witnessed a remarkable 523% increase, rising from ₹65 in February 2022 to ₹405 by September 2024.

3. Portfolio Diversification

Diversifying portfolios with companies not listed on stock exchanges can help reduce overall investment risk. Since private markets are not exposed to the same level of public trading activity, their volatility tends to be lower compared to listed markets, offering more stable long-term growth potential.

4. Exclusive Investment Opportunities

The private market offers early access to promising startups and companies before they go public, creating potential for significant returns.

How to Buy Unlisted Shares

Investors can acquire unlisted shares through startups, intermediaries, ESOP sales, or platforms like Precize, which simplifies private market investments. With a minimum investment of ₹10,000, Precize makes unlisted shares accessible to both new and experienced investors.

While unlisted shares offer compelling benefits, they also come with risks such as limited liquidity, less public information, and uncertain timelines for public listings. Investors should perform detailed research and assess these factors carefully. Precize helps mitigate these risks by providing valuable insights and research reports on private companies so investors can make informed investment decisions. Here’s how:

What Makes Precize Stand Out?

Precize enhances the investment experience with features such as:

1. Access to Private Markets
Explore over 150 private companies, including emerging startups like Boat and established players like Tata Capital.

2. Comprehensive Research Reports
Access detailed financial statements, industry insights, and peer comparisons to make data-driven investment decisions.

3. Historical Price Tracking
Analyze market trends using historical price data to identify potential investment opportunities.

4. Market Updates
Stay informed with regular updates on pre-IPO shares and private sector news by visiting the Precize news section.

5. Seamless Investment Process
With Precize, you can buy unlisted shares and sell your holdings within 24-48 business hours, as they faciliate a buyer for you.

Simple Steps to Invest via Precize

Investing in unlisted shares through Precize involves a few easy steps:

Step 1: Select a Company
Choose from a curated list of private companies that align with your financial goals.

Step 2: Add Funds
Add funds to your Precize account using UPI or bank transfers.

Step 3: Place Your Order
Confirm your investment and place your order, and your shares will be transferred to your depository account within 24-48 business hours.

Conclusion

Unlisted shares offer promising diversification and growth potential before companies go public. However, these investments also come with risks such as market volatility and uncertain company performance.

Conduct thorough research, set clear investment strategies, and consider platforms like Precize to mitigate risks and enhance decision-making. With its comprehensive data, insightful reports, and streamlined processes, Precize empowers investors to navigate the private market confidently.

(Disclaimer: Investment outcomes depend on market conditions and company performance. Conduct detailed research before making investment decisions.)
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