In today’s time, every person wants to invest their surplus money in one or the other market. This habit of people has led to an increase in the demand for investment in the equity share market. It is one of the ways that will help the person to see growth in the investment in a short period. Most of the equity shares are listed on the BSE or the NSE that provides the shares to freely get traded in the market. But there is another list of shares i.e. unlisted shares, these also constitute the equity share market. The person can easily buy sell unlisted shares in the market.
These shares are also known as the pre-IPO shares because these are issued before the company gets a launch in IPO and goes public. The person can easily buy the unlisted shares through different ways listed below:
- Through intermediaries and start-ups: Many specialized start-ups create an opportunity to invest in the unlisted shares. It is very simple to buy these shares by opening a Demat account with them. The minimum investment needed to invest in the unlisted shares is Rs. 50,000 of each company. You can easily invest buy you will get the delivery of the shares on the T+3 basis that means after three days of the buying of the shares. In this case, there is a counterparty risk involved in this mode of buying so be careful while buying the shares.
- From the employees of the company: Mostly when the start-ups start the hiring of the employees, they offer the employee stock ownership plan that will allow the employees to have the equity of the company while they join it. It allows the employees to buy the shares at the pre-determined price and pre-defined time. After this, if the employees want to sell the unlisted shares, they can easily contact a broker to help them with the sale of the unlisted shares in the market.
- From promoters of the company: Many a time the companies take the help of the promoters to sell the stake of the company. This process is known as a private placement. The interested person can easily buy from them and can invest in the shares. TO make the right investment it is very important to have a good network in the market so that the best investment s done.
- Through equity crow funding platforms: Various crow funding platforms allow the person to invest in the equity share market especially in the unlisted shares. You can easily become an angel investor and help the company to grow and become successful. No doubt this involves some risk in the market but once the company establishes it can provide great returns.
So considering these ways, the person can easily invest in the unlisted shares. The unlisted share price may vary according to the company and the condition in the market. So it is very important to analyze the market and after that only take the necessary steps.