Offers & Updates

  • Download the Moneyfy App

    Be Investment ready in minutes

    Download Now

  • Take a Tata Capital Home Loan

    Lowest interest rates starting at 7.15%*

    Apply Now

  • Apply for a Tata Card

    Get benefits worth Rs. 18,000*

    Apply Now
Snow

Top Recommendation

Report
Report
Report
Report
Report
Report
    

THE CORE OF A PREIPO

A pre-IPO placement is a sale of large quantities of stock in a company before it is listed on a public exchange

The buyer gets the shares at a discount from the IPO price.

This is a strategy for the company to raise funds and mitigate or lower the risk in case the IPO is not as successful as it was supposed to be.

-Ready To Invest Now

  From the point of view of a start-up or a relatively new company, a pre-IPO placement is a strategy to raise funds before going public. It also is a way to reduce the risk that the IPO price will grow as per their expectations. Moreover, and frequently, investors in these private sales are strategic focused investors and help the company with official matters before going for IPO. From the buyer's point of view, the amount per share may be lower from the expected IPO price, but there is no surety that the price per share will be higher when IPO occurs. In fact, the buyer makes a deal without a prospectus and with no guarantee that the public listing will occur. The lower price is reimbursement for this uncertainty.

  Very few individual investors take part in pre-IPO placements. They are generally affluent financial experts with an in-depth knowledge of the financial markets.

  Keeping in mind their safety the company, on the other hand does not want these private buyers to immediately sell all their shares if their stock grows once it opens on an exchange. To prevent this, a fixed tenure is mentioned in the placement, preventing the buyer from selling shares in a short-term period.

Company Name ISIN NUMBER Market Price Rating Process
Bagrrys India Limited INE229F0102 1995 Rating
Bikaji Foods International Ltd. INE00E101023 400 Rating
Auckland jute (CDSL only) NULL 55 Rating
Care Health Insurance(Religare) INE957N01016 155 Rating
Goa Shipyard Limited INE178Z01013 300 Rating
ICL Fincorp INE01CY01013 29 Rating
Kannur International Airport INE02Y401013 122 Rating
Metropolitan Stock Exchange INE312K01010 1.4 Rating
PNB Metlife (NSDL only) INE207O01014 62 Rating
Reliance Retail INE742O01010 3200 Rating
HDFC Securities Limited INE700G01014 14700 Rating
A V Thomas & Co. Limited INE944K01010 13985 Rating
Anugraha Valve Casting INE629Z01015 455 Rating
Arkfin Investments Private Limited INE06EK01017 54 Rating
Asian Bearings Ltd. NULL 4 Rating
Arraycom India Ltd. NULL 108 Rating
AB Corp Ltd. NULL 12 Rating
Ahmedabad Stock Exchange - (NSDL Only) NULL 58 Rating
Amalgamation Repco Ltd. NULL 528 Rating
Anand I-Power Limited NULL 33 Rating
Vikram Solar Ltd. NULL 370 Rating
Transformers & Electricals Kerala Limited NULL 90 Rating
Merind Ltd. NULL 390 Rating
Kusum Industries Gases Limited NULL 592 Rating

FAQ's

Equity shares of a company that are not yet listed on the Stock Exchanges like BSE, NSE, MSEI, etc. are called unlisted equity shares

Existing stakeholders, promoters or employees who have equity shares of an unlisted company and early investors who wish to get value of their investment. We create a platform for people to sell their ESOP shares to us at attractive valuations, creating liquidity for companies.

Yes most shares are transferable through the DEMAT process. Some private companies might be transferred through physical mode as well.

Pre-IPO shares are of companies who are up for an Initial Public Offering, making them a listed company on a Stock Exchange. An IPO event is recognised as unlocking true value out of a company’s share as it is available for every one to buy and sell on an exchange.

1.Reasonable Valuations Unlisted/Pre IPO trade a certain discount to their listed comparables and thus generate superior returns
2.Preferred Access Invest with VCs and Private Equity Funds in companies which are not otherwise available to retail investors
3.Diversification Get access to sectors/geographies which are not currently present in the listed markets (Eg. Startup space, Gaming Industry, IPL via CSK etc)

1.Liquidity RiskSince the shares are not traded on an exchange, they are subject to liquidity risk.
2.Niche MarketThe market for unlisted shares is relatively smaller than the one on a stock exchange.

The minimum lock in period applicable after purchase of unlisted shares is 6 months.

1.Altius is the market leader in the unlisted space and has been covered in leading publications (Click on link) (ET, Financial Express, Forbes etc).
2.We are the preferred partners for Reliance Securities, Karvy, Edelweiss and have worked with most other leading wealth management firms in the past.
3.We also provide an option of escrow services to our clients and have ICICI and HDFC Bank stand as our guarantors of executions.

The time frame varies from company to company and in what stage of business the company is in. 2-5 years is considered an average timeframe for investments in unlisted shares. If the company does not come up for an IPO, the investor can sell the shares in the active grey market. We actively provide a two way quote in most of the stocks we deal in.

Unlisted Stock is not listed on any recognised stock exchange. Thus, the Company does not pay STT i.e. Securities Transaction Tax on such shares. The period of holding is 24 months. Income Tax on Trading (Click on link) in unlisted shares is similar to the tax treatment of other capital assets (Click on link). The following are the income tax rates on the sale of unlisted shares of a Domestic Company or Foreign Company.
1.Long Term Capital Gain – 20% with Indexation
2.Short Term Capital Gain – taxed as per slab rates
3.In the case of a Non-Resident, LTCG on Unlisted Stock is 10% without Indexation

Funds House

Investments in Securities markets are subject to market risks, read all the related documents carefully before investing. Insurance is not an Exchange-traded product and Eliios Fintec Pvt Ltd is just acting as a distributor. All disputes with respect to the distribution activity, would not have access to the Exchange Investor Redressal Forum or Arbitration mechanism. Eliios Fintec Pvt Ltd is a registered Mutual fund distributor with AMFI Reg no. ARN – 126278, *Brokerage will not exceed the SEBI prescribed limit. Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund, or designing a portfolio that suits your needs. Eliios Fintec Pvt Ltd (with ARN code 126278) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however, caused, in connection with the use of, or reliance on, its product or related services. Terms and conditions of the website are applicable. Apple and the Apple logo are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc., registered in the U.S. and other countries. The Android robot is reproduced or modified from work created and shared by Google and used according to terms described in the Creative Commons 3.0 Attribution License. Eliios Fintec Pvt Ltd is registered - | ARN - 126278 AMFI-Registered Mutual Fund Distributor | Check your securities / mutual funds/bonds in the consolidated account statement issued by NSDL/CDSL every month. Eliios Fintec Pvt Ltd CIN: U74999DL2021PTC390267 hasRegd. office:- Plot No. 40, G/F Shop Gali No 06, Mohan Nagar, New Delhi – 110 046. Insurance is subject to market risks and is a subject matter of solicitation. It is the users’ responsibility to understand the restrictions and risks involved in different insurance products/policies. Under no circumstances can/will Wealth India Financial Services Limited take any liability for this. We request users to read and understand the offer and subject documents carefully.

© Helois - 2020 | All Right Reserved.