Unlisted shares are the shares that are not listed on a stock exchange . It includes the companies like startups, growable companies, and upcoming IPO.
Unlisted shares also include those shares which are delisted from the stock exchange, not tradable in the stock exchange and the shares that needed to be liquidated in the market before listing .
Shares may be delisted if the investor losing money , not traded in the stock market and due to some non-compliance.
The process by which the physical share certificates of a company are converted to an electronic form is what is commonly known as dematerialization of shares.
These dematerialized shares are then held in an online demat account that you open with a depository.
In the current context of stock trading, share dematerialization is mandatory in order to be able to sell or transfer your shares to another account.
We procure unlisted shares from Employees (ESOP), Accredited investors, venture capital, private equity, Alternative investment Funds.
• One of the Major problem is IPO allotment, is that good companies get oversubscribed, and investor usually don’t get allotment, so unlisted market provides a good opportunity to invest in initial stage
• The minimum investment in private equity is 1 crore - 5 crores which is hard for retail to invest.
• The benefits of attractive growth will be enjoyed by large institutional investors such as venture capital funds, accredited investors, and private equity funds, but retail investors or HNI will be unable to invest at this time due to the minimum amount. They will be able to invest when the IPO is launched and earn a small return.
• Unlisted equity shares are a distinct asset class that offers some risk diversification to investors who are primarily invested in listed stocks.
• Unlisted equity shares have relatively stable
prices in comparison to listed equity shares.
· All our transactions are verified by a SEBI-registered trustee which provide authenticity and credibility to our investors.
· All bids are placed using the E-Mandate feature, which ensures transaction security.
· We have a dedicated professional team to help you through the process and make it seamless.
· majority of our transactions settle on the same day.
· Buying/selling of unlisted investments through the same platform.
· Unizon is the platform that shows the market depth for a share that brings a price transparency
Understand the company
First we try to understand business of the company which gives us the insight as to how the company is performing, what are the future plan of the company whether the company is taking right decisions towards its future goal or not.
Study the financial reports of the company
Once we analyses business of the company, we start analyzing its financials such as balance sheet, profit-loss statements, cash flow statements., we also analyses ratios of the company, debt of the company and the CAGR of the revenue and Profit for last 5 year.
Next Step is peer’s comparisons; we analyses ROE and ROCE of peer’s companies Try to find a company which is performing better than the other companies. Evaluate better future prospects, upcoming projects, new plant etc.
Review all the aspects time to time
We regularly analyses future earning of the company, news of the company, if there is any change in Government policy which may impact earning of the company, so we regularly update our research report.
Investment in unlisted shares are legal,money transfers are done by trustee from Bank to Bank and shares transfers are also done by trustee from demat to demat and we also pay stamp duty to government as we pay in listed also like STT chargers, brokerage, and stamp duty charges