Pre IPO shares list: Understand the company before investing

Pre IPO shares list
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Here is the Pre IPO shares list that gives an idea of what the companies listed under pre IPO platforms or unlisted company trading platforms.

Pre IPO shares are those shares that are not yet listed in any exchanges worldwide. While Pre IPO investing is beneficial and rewarding, the risk is very high here. Talking about the benefits of the Pre IPO investing, you can get huge rewards while these unlisted companies come up with IPOs. Usually, these companies come up with higher valuations during the IPO process and investors are rewarded handsomely.

In a recent case study, Juniper Hotel and Resort which came up with an IPO recently, the IPO price was in the range of Rs 342 to Rs 360 while the Pre IPO price of this company was Rs 185 which was traded in a Pre IPO platform named Planify.

However, the most important part to understand before investing is the risk factors. Here are two major risk factors – one is to find out the right Pre IPO share platform to invest in, second is the find out the right company to invest in.

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How to buy pre IPO shares

The concept of pre IPO investing by retail investors is new in India. However, fund managers and angel investors are used to investing in companies in Pre IPO sessions only. Hence, the regulation for Pre IPO investing is different than IPO investing. The lock-in period for Pre IPO investment is a minimum of 1 year. Investors cannot be sold any Pre IPO shares during this period. Again, pre-IPO shares cannot be held in physical form. These shares can only be in demat form, otherwise they are not ready to be sold when due.

The amount of investment in Pre IPO companies is quite high above Rs 5 crore. Hence, the risk is very high here. Generally, PE investors, hedge funds, HNIs, and family offices are invested in Pre-IPO stocks.

Retail investors can also participate in the pre-IPO market through direct participation or via, PMS (portfolio management services). Currently, many PMSs allow investors to subscribe to their pre-IPO PMS with the sole condition that the funds would only be invested in pre-IPO allotments.

The most important part of Pre IPO share market is how to buy and sell it. Few PMS and other Pre IPO platforms make it easy to buy Pre IPO shares. However, once the lock-in period of the Pre IPO investment is over, you can sell these unlisted shares directly to other potential buyers. This can directly be done through demat account transfer, not through the market mechanism.

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However, the best way for retail investors is to take an exit in the IPO of the company. Hence, while investing in Pre IPO shares, it is one of the factors to look into if the company is planning for IPO within a year or so.

The major Pre IPO investors such as PE firms or hedge funds are investors in the company looking at the story behind the company. They prefer to hold on to the share till the company is mature enough to take an exit or if the company is only burning money. If the stock has the potential to go up 4-5 times in 2-3 years, then it makes a lot of business sense for the pre-IPO investor to hold on to the stock. However, most of the time these investors do a mix like they partially sell some of their pre IPO shares in the IPO and then hold on to the balance to get the best deal.

Let us see what are the best Pre IPO shares available in the market now in the below table of Pre IPO shares list.

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Pre IPO Shares List

Pre IPO Shares NamePre IPO Shares Price RsPlatforms
National Stock Exchange (NSE)4700Planify
Chennai Super King180Planify
Bank Bazar1009Planify
HDB Financial Services850Unlisted Zone
Waaree Energies 1950Unlisted Zone
Vikram Solar290Unlisted Zone
Tata Capital820Planify
Capegemini technology services12000Unlisted Zone
Care Health190Unlisted Zone
BIRA625Unlisted Zone
Allied Blenders11Planify
Top Pre IPO shares in India

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