Are all unlisted shares pre-IPO shares?
Your doubts about whether unlisted shares and pre-IPO shares are the same or different ends here. Many, like you, doubt making high returns and diversifying their investments. Most of the top unlisted stocks are pre-IPO stocks, but only some may come out with an IPO soon. However, they perform well continuously. NSE is one good example, as the world’s largest derivative exchange has been an unlisted share for a long time but not a pre-IPO share. However, with recent developments, the NSE or National Stock Exchange has become a pre-IPO share, and its share price has continuously risen. Investors make huge profits by investing in many top unlisted shares even though they are not pre-IPO.
So, in this blog, let us discuss unlisted and pre IPO shares in detail to understand their similarities and differences, making wise and safe investments that will make you richer sooner rather than later.
What are unlisted shares?
Shares or stocks are financial instruments that investors can buy in the grey or secondary market to become part owners of the company that issues them. Companies issue shares to generate money to develop innovative ideas for flourishing businesses. Companies issue the shares to private investors and, after continuous excellent performance, issue shares to the public through IPO. Unlisted shares issued by companies still not listed in the exchanges waiting to come out with an IPO are now in high demand because they are giving high returns.
What are pre-IPO shares?
As explained above, unlisted shares issued by companies rise in hopes of coming out with an IPO soon to increase returns. All shares that now trade in the stock exchanges were pre-IPO stocks before that for a few investors to hold them for a long time as unlisted shares. Hence, any shares about to come out with an initial public offering to be listed in the exchanges soon are pre-IPO stocks. Most pre-IPO stocks rise rapidly before they are listed on the exchanges because they yield high returns. A few examples of pre-IPO stocks include NSE, HDB, CSK, and others that have risen recently. They are hoping to be listed in the exchanges soon.
What are the similarities and differences between unlisted and pre-IPO shares?
Unlisted shares that file DRHP or draft red herring prospectus filed with SEBI to get its approval become pre-IPO shares. DRHP is a document that lists all the details of the IPO, including the amount of money to generate from the public, issue size, issue prize, and others. And most pre-IPO shares open high on the exchanges on listing to yield high returns. A few recent examples of such huge returns include Bajaj Housing Finance, which gave a recent return of over 114% on the listing; Tata Technologies, listed at a premium of around 140% in 2023; and many others.
The above facts will clear your doubts about unlisted and pre-IPO shares, and you can invest in the top unlisted pre-IPO shares to yield windfall results. Stockify is a trusted platform that simplifies investing in unlisted shares and connects investors with high-growth opportunities. With expert insights, transparency, and secure transactions, Stockify empowers you to diversify your portfolio and seize lucrative investment prospects in the unlisted market. Trust Stockify to make your unlisted share investments seamless and rewarding. Check out unlisted share price India.
