What are Unlisted Shares?
Unlisted shares, sometimes called off-market stocks, are not bought and sold on regular stock exchanges like the ones you hear about in the news. These shares are a bit riskier because they're not as easy to sell, and it's harder to know exactly how much they're worth. But if you pick the right unlisted share that's likely to grow, it can turn into a really good investment when it eventually becomes available for trading on the big stock exchanges. That could mean making a nice profit.
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Why to invest?
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Get In Early: Investing before a company goes public lets you be part of its early success as your money grows with the company, which can mean more profit. It's best when you are planning to invest for the long term.
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Potential for High Returns: If you invest in unlisted shares of a good company like Tata Technologies Ltd., Hero FinCorp Ltd. etc., the value of your investment could increase significantly when the company goes public (listed on a stock exchange). Early investors often benefit from the company's growth.
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Feeling of Ownership: Investing in unlisted shares is like investing by Sharks in Shark Tank. Here you are interested in the solution being provided by the company and the future of the solution. When you invest in unlisted shares, you become the owner of the company along with only a few more people. This gives you a sense of ownership and you feel proud for choosing the company when it grows.
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Things to consider
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No Regulated Market: Unlisted shares are not traded on public stock exchanges, making them less liquid. Selling these shares quickly or at the desired price might be challenging. Transparency and certainty regarding the true worth of the investment is also lower. However, at VPJ World, we help you to sell the shares at the right price by arranging the buyers to maintain the liquidity.
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Lock-In Period: There is a lock-in period of 6 months from the date of its listing. It means that either you have to sell the shares before the IPO or after 6 months of the listing of the shares.
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Tax Implications​​: Contact us for tax implications involved in Unlisted shares and our team of CA's will assist you.
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