blog/article-blog/Invest in Pre IPO with Planify

Aug 4, 2022

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Invest in Pre IPO with Planify

Invest in Pre IPO with Planify

A Pre-Initial Public Offer placement is a private sale of a block of shares before the stock is listed on a Public exchange. Buyers are typically Private Equity firms, hedge funds & other institutions willing to buy large stakes in the firm. Planify is the largest Private Equity Marketplace in India. Pre IPO is a product by Planify which brings “Private Equity for Retail Investors.” One can invest in companies that get listed on the stock market.


  • For the company, the placement is a way to raise funds & offset the risk that the IPO will not be successful as hoped. Moreover & often, investors in these private sales are institutional investors & help the company with governance matters & getting institutional before going for IPO.


  • From the buyer's perspective, the amount per share may be discounted from the expected IPO Price, but there is no way to know the price per share that the market will pay.


  • The company, however, does not want these private buyers to immediately sell all their shares if their stock soars once it opens on an exchange. To prevent this a lock-up period is generally attached to the placement, preventing the buyer from selling shares in the short term.


Why Pre IPO & not IPO?

Pre IPO is a much more financially lucrative option compared to investing in IPO for retail investors, as when you invest in IPO with a maximum limit of 2 Lakh, you would get an allotment of 4000-6000 shares which is too low.


In India, if you want to invest in Private equity you require 2 Cr. which many retail investors can’t invest. On one hand, retail investors don’t get allotment & Private Equity players don’t get investors.


Planify has come up with a solution called Pre IPO. People using this product can invest in companies that haven’t been listed yet but could be listed in the near future.


Planify carries out a proper analysis of companies, makes Research reports & then recommends those companies which are growing & are commercially proven. A minimum Ticket Size of 25,000 is reqd. to help even small investors to invest in partnership with Planify.

Benefits of Pre-IPO-

Quality Stocks can be purchased over Quantity.

Companies in which people would be investing are growing companies. In future you can sell shares at a good price & earn good profits.


Investors Tip- It is far better to invest in a good company at a fair price rather than investing in an average company at a lower price.