Want to buy shares in Ola, Paytm, or Byju’s, like the stocks that aren’t in the open market? Know about Pre-IPO investment.


  • The current employees of a company that doesn’t want to face an IPO, have the ability to sell their stock in the company to interested investors.
  • Some investment firms, like Analah Capital, TradeUnlisted, and Unlistedkart, offer their online brokerage services to help investors purchase shares in companies that aren’t listed on the major stock exchanges.
  • Investing in unlisted companies is a risky venture that’s not recommended unless your cash sits in your savings account after covering your other expenditures.
Pre-IPO investment
Pre-IPO investment

Reliance Industries and State Bank of India are popular among the public for making investments. Investing in private companies with growth potential can lead to attractive returns even though one may also invest in listed companies that could benefit from growth.

Shares of private companies are not open to trading in any stock markets. As a result, those interested in investing in those companies can do so through alternative platforms.
Retail investors have several options when it comes to the unlisted space, here are some of the methods to use:

Pre-IPO investment

Pre-IPO trading (or purchasing shares of a company before they’re traded on the stock exchange) is the act of buying or selling shares in a company before it goes public. You do not have a stock exchange to buy these shares because they are not being traded publicly.

People who can’t or don’t want to trade unlisted shares on an exchange can buy them via intermediaries and platforms that trade them. Intermediaries and platforms purchase shares from employees, i.e., employee stock options (ESOP), existing investors, and new investors who want to invest.
For the first time in years, the pre-IPO market has finally been opened up to the general public. Some investment firms, like Analah Capital, TradeUnlisted, and Unlistedkart, all of which offer various platforms for helping investors in their quest to purchase unlisted stock. People will put their shares in a Demat account.
According to Unlistedkart, the minimum price could be as low as ₹ 25,000 to ₹ 50,000. No other investment platforms mention a minimum investment threshold.
Share prices are locked for six months after the IPO is finished, as dictated by the regulator. The ban on selling stocks in the first six months after they’re listed means you won’t be able to sell until after that.
Unlisted securities are considered short term if they are sold within 24 months. Your gains are taxable, and the amount is added to your income. In addition, it is subject to a 20% long-term capital gains tax with indexation (after 24 months).
Remember that unlisted shares are illiquid and volatile, so if you try to sell your shares immediately, you may find it difficult. Since the early-stage markets are mostly held by institutional players, and transaction speed is relatively slow (making it impossible to sell shares and access capital whenever it is needed).

CompaniesPre-IPO sellingIPO price bandListing priceCurrent price
Bombay Stock Exchange₹200₹806₹1069₹1179
Ratnakar Bank (RBL)₹60₹225₹301₹179
ICICI Lombard₹400₹661₹680₹1600
HDFC Standard Life₹210₹290₹344₹742
Avenue Supermarts (DMart)₹280₹300₹616₹4209
ICICI Prudential Life Insurance₹130₹334₹310₹696
Central Depository Services (CDSL)₹60₹149₹261₹1335
AU Small Finance Bank₹175₹358₹597₹1115
Source: Planify

Pre-IPO funds

One of the major reasons investors invest in pre-IPO funds is because they are given access to good companies early. Some wealth management firms that offer investment funds that invest in pre-IPO companies include Edelweiss Wealth Management, Kotak Investment Advisors, Trifecta Capital, and IIFL Wealth.

A company that invests in newly listed and forthcoming IPOs claims to have generated a compound annual growth rate (CAGR) of 21.7 percent since its establishment.

Warning: You should invest only extra money into illiquid and volatile investments when you’re a retail investor. Even if you get robbed, it won’t really affect you.

You may be interested in the following article

Which cryptocurrency should you use for transaction or buy and sell in India? – Click Virtual University (clickuniv.com)


28 responses to “Want to buy shares in Ola, Paytm, or Byju’s, like the stocks that aren’t in the open market? Know about Pre-IPO investment.”

  1. This is very attention-grabbing, You’re a very skilled blogger.
    I’ve joined your feed and look ahead to looking for extra of your great post.
    Also, I have shared your site in my social networks

    Also visit my page … deta 8 vapes [area52.com]

  2. Hello there I am so happy I found your weblog, I really found you by mistake,
    while I was looking on Askjeeve for something else, Nonetheless I am
    here now and would just like to say kudos for a remarkable post and a
    all round thrilling blog (I also love the theme/design), I don’t
    have time to look over it all at the minute but I have
    saved it and also added your RSS feeds, so when I have time I will be back to
    read much more, Please do keep up the superb job.

    Review my homepage; do cbd gummies help with cramps

  3. I’m very happy to find this page. I need to to thank you for
    ones time for this wonderful read!! I definitely really liked every little bit of it and i also have you saved
    as a favorite to check out new information in your web site.

  4. Hmm it seems like your website ate my first comment (it was super long)
    so I guess I’ll just sum it up what I submitted and say,
    I’m thoroughly enjoying your blog. I as well am an aspiring blog writer but I’m still new to the
    whole thing. Do you have any helpful hints for newbie blog writers?
    I’d definitely appreciate it.

  5. Excellent article. Keep posting such kind of information on your page.
    Im really impressed by your site.
    Hi there, You have performed an excellent job. I will certainly digg it and personally suggest to my
    friends. I’m confident they will be benefited from this web site.

  6. I’m impressed, I have to admit. Rarely do I come across
    a blog that’s equally educative and engaging, and without a doubt, you have
    hit the nail on the head. The problem is something which not enough folks are speaking intelligently about.
    Now i’m very happy I stumbled across this during my hunt for something regarding this.

  7. I just could not leave your site before suggesting that I actually loved
    the standard info an individual provide for your guests?
    Is gonna be back frequently to check up on new posts

  8. Hey! I’m at work browsing your blog from my new apple iphone!

    Just wanted to say I love reading your blog and look forward to all your
    posts! Carry on the excellent work!

  9. You really make it seem so easy with your presentation however I
    find this matter to be actually something that I think I would never understand.

    It seems too complicated and very broad for me. I’m looking ahead to
    your subsequent publish, I’ll attempt to get the dangle of it!

  10. Pretty great post. I simply stumbled upon your blog and wished to mention that I’ve really enjoyed surfing around your blog posts. After all I’ll be subscribing to your rss feed and I hope you write once more soon!|

  11. Thanks for your personal marvelous posting! I really enjoyed reading it, you could be a great author. I will make certain to bookmark your blog and may come back very soon. I want to encourage you to ultimately continue your great job, have a nice afternoon!|

Leave a Reply

Your email address will not be published.