Unlisted shares have become the hot new favorite of the rich investors in India. Many companies or their shareholders are offering Pre-IPO shares to the investors in India 1-2 years before getting listed on the stock exchanges. In this article, we discuss the various companies whose unlisted shares are selling like hot cakes and their share prices are also going up.
1. Reliance Retail:
Reliance Retail Limited operates as a supermarket. Reliance Retail Limited is owned by Reliance Industries Limited. It has become the largest retailer in India in terms of revenue. Its product line includes fruits & vegetables, grocery items, dairy products, health and personal care items. Reliance retail is also into travel, energy, entertainment, leisure, educational products, and services. It has 10,644 stores in 6,700 cities and it occupies approximately 23 million sq ft of retail space.
Reliance Retail Unlisted shares are primarily owned by Reliance Retail and few individuals. Reliance Retail Share Price has been increasing continuously and has moved from Rs. 800 in Jan 2020 to around Rs. 1500 in Mar 2021.
2. NSE India
National Stock Exchange (NSE) was incorporated in 1992 as a private limited company. In April’93, the company was recognized as a stock exchange by SEBI and became the first demutualized stock exchange in India. NSE has a fully-integrated business model comprising our exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions, and financial education offerings.
NSE's shares are held by promoters that includes Banks like SBI, IDBI Bank, and Insurance Companies like National Insurance Company and United India Insurance Company Limited. NSE also has several private investors such as Goldman Sachs (3%), Morgan Stanley (3%), SAIF Partners (3.55%), Acacia Banyan Partners (2.5%), Tiger Global (3%) and Norwest Venture Partners (1.58%).
NSE India Unlisted Share Price is on a high but buying a piece of exchange is not easy as every transaction has to be approved by its board of directors. Moreover, NSE India shares are traded in bulk therefore a retail investor cannot think of buying its shares.
3. Paytm Shares
Paytm is One97 communications’ flagship brand. It is one of the India’s largest digital goods and mobile commerce platform – motivated and driven by a commitment to great consumer experience. Paytm is also a largest payment solutions provider to e-commerce merchants using its RBI approved wallet. One97 also provides various other services such as mobile content and commerce services to millions of mobile consumers through India’s most widely deployed telecom applications cloud platform.
Paytm Unlisted Shares are in great demand by Indian and foreign investors alike. The unlisted shares of Paytm are sold by the investors and the employees. Paytm Share Price has moved up significantly after T Rowe price recently valued the shares at Rs. 19,000
4. Flipkart Shares
Flipkart is an e-commerce company that was started in Bengaluru, India. Its founders are Sachin Bansal and Binny Bansal who started it in 2007. The company initially focused on book sales, and later entered into various other categories such as fashion, groceries, consumer electronics and lifestyle products. In August 2018, Walmart acquired controlling stake in Flipkart for US$16 billion, valuing it at $20 billion, It was one of the biggest deal in ecommerce sector worldwide.
Majority of the Flipkart Stock are held by Walmart and by other investors and employees. Very few shares are traded in the unlisted market, therefore it is difficult to estimate Flipkart Share Price
5. HDB Financial Services
HDB Financial Services (HDBFS) is a major Non-Banking Financial Company (NBFC) that provision to growing needs of an Aspirational India, serving both Retail & Commercial Clients. It was incorporated in 2008, and has a well-established business with strong capitalization. HDBFS has AAA rating from CARE & CRISIL for its long-term debt and Bank facilities and A1+ rating for its short-term debt & commercial papers, making it a strong and reliable financial institution.
HDB Financial Services (HDBFS) is a subsidiary of HDFC bank, therefore majority of its unlisted shares are held by HDFC Bank. Few shares are held by other investors and employees who are selling them in the unlisted market before IPO. There is a strong demand for HDB Financial Services unlisted shares. As a result, HDB Share Price is moving up consistently and has touched Rs. 1,000 mark recently.
Conclusion: As the listed share market is booming, many investors have also become interested in the unlisted share market. Unlisted shares can give handsome returns and create wealth if the investor is patient. However, unlisted shares also carry risks such as low liquidity, delayed IPO, company going burst before IPO, therefore investors should do their homework before investing into such shares. All prices quoted in this article are estimates taken from public sources and investors should not rely solely on them and must consult their financial advisor before making any investment. For more details on unlisted share please refer to Prastaav