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Platforms through which one can make investment in unlisted shares in India

Unlisted shares are the shares of companies that are not traded on any stock exchange. They are also known as pre-IPO or private equity shares, as they are usually issued by companies that are planning to go public in the future or by private companies that want to raise funds from investors. Investing in unlisted shares can offer several benefits, such as:


- Higher returns: Unlisted shares can offer higher returns than listed shares, as they are often undervalued and have the potential to appreciate significantly when the company goes public or gets acquired.

- Diversification: Unlisted shares can help diversify the portfolio of investors, as they are exposed to different sectors and industries that may not be available in the listed market.

- Access to innovative and emerging businesses: Unlisted shares can give investors access to innovative and emerging businesses that are disrupting their respective fields and have high growth prospects.


However, investing in unlisted shares also involves some risks, such as:


- Lack of liquidity: Unlisted shares are not easily tradable, as they have a limited market and buyers. Investors may have to wait for a long time to exit their investments or sell them at a discount.

- Lack of transparency: Unlisted shares are not subject to the same regulatory and disclosure norms as listed shares. Investors may have less information and data about the company's performance, financials, governance, and valuation.

- Higher volatility: Unlisted shares are more prone to price fluctuations, as they are influenced by various factors such as market sentiment, news, rumors, and speculation.


Therefore, investors should do their due diligence before investing in unlisted shares and assess their risk appetite, investment horizon, and return expectations.


There are various platforms through which one can make investment in unlisted shares in India. Some of them are:


- Online platforms: There are several online platforms that connect buyers and sellers of unlisted shares and facilitate transactions. Some examples are UnlistedZone, Unlistedkart, Prastaav, etc. These platforms offer features such as online bidding, escrow services, research reports, and customer support. However, investors should verify the credibility and reputation of these platforms before using them.

- Brokers and dealers: There are also brokers and dealers who specialize in dealing with unlisted shares. They have access to a network of buyers and sellers and can help investors find suitable deals. Some examples are Share India Securities, Enrich Advisors, etc. However, investors should check the credentials and track record of these brokers and dealers before engaging them.

- Directly from the company or shareholders: Investors can also buy unlisted shares directly from the company or its existing shareholders. This can be done through private placements, employee stock options, rights issues, etc. However, investors should ensure that they have proper documentation and agreements in place before buying unlisted shares directly.


Investing in unlisted shares can be a rewarding but risky proposition. Investors should do their homework and choose the right platform for their investment needs.

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