Explore Opportunities in Pre IPO & Unicorns

PreIPO shares are private placement in the private equity segment which is equivalent to secondary sales of shares and are not direct investment in the company.

Direct Investment is when a company raises fresh capital by issuing new shares in the market which is also called Follow on Public Offer (FPO).

Shares can be divided into 5 phases:
1. PreIPO - When a new company is formed and shares are issued then with time as the company grows the value of shares also increases.
2. Listed Shares - When an organization becomes so big that it needs public funding for further advancement then it applies for an IPO and gets listed on a stock exchange.
3. Stopped Trading - When shares of a company become inactive due to less or interest by investors. For example Taparia Tools which shares stopped trading due to less volume.
4. Delisted - When a company delists its shares from the exchange due to various reasons:
- Company has been consistently making losses.
- Lack of investors’ interest in the company’s shares has forced exchange to delist the company.
5. Liquidation - When a company decides to de-register itself then it goes into the liquidation phase.

a) PreIPO is Secondary Sale and not Primary Investment in companies?
PreIPO shares transactions are similar to the ones that happen on the stock exchange. The only difference is that in PreIPO there is no exchange and the shares are transferred from Demat to Demat.

Before introducing the Demat concept companies used to issue their shares in a physical form. But when Demat concept was introduced in 1994 companies tend to dematerialise their shares for benefits like:
- easy transfer of shares
- no risk of lost or stolen
- no risk of tearing

Demat means electronic form of the shares. A company can get its shares dematerialised from NSDL or CDSL. These are only two depositories in India where shares are kept in demat form. In the private equity market, company shares can be transferred from one demat account to another demat account.

We procure shares from employees of the companies holding ESOPs or Venture Capital investors like Mutual funds, Private Equity funds, VC funds, and Alternate Investment funds. Who want to sell their shares of the company in the market.

ESOPs (Employee Stock Option Plan) is a scheme under which shares are issued to employees at a lower price for the purpose of retaining, increasing productivity and motivating them.

There is no match of the Pre IPO market with Grey Market. Grey market is a betting market where people gamble and place their bets on Allotment probability, listing price of stock, Volume on listing day, over subscription of shares etc.  It is Similar to Dabba Trading also known as “Bucketing”. On the other hand investors invest legally in the pre ipo market. They can buy and sell shares through their demat account only.

Yes. Buying and selling of PreIPO shares is perfectly legal as all monetary transactions happen from normal banking channels and shares are transferred from Demat to Demat with proper payment of all government charges like Stamp Duty etc.

15 rupee stamp duty on 1 lakh.

Stock Brokers have their expertise in listed shares. So they deal in only listed shares of the companies.

Pre IPO market is a secondary market. So Price of Pre IPO shares are decided by demand and supply of the shares. If Demand is more than supply the prices will go up and if the demand of the shares is less than supply, then the price of shares will go down.

Planify connects directly with investors of the company who are looking to sell their shares. Because of cutting the middleman. We are able to provide the shares to the investors with the best price possible. Stock brokers in the Pre IPO market act as intermediaries, therefore quoting higher prices to investors.

CMR Require for starting ( for account details, Dmat details)

The process of Investment is similar to buying listed company shares. When we buy the listed shares, we get the shares in our demat account in (T + 2 ) days. But in case of Pre IPO investment Investors provide us with the margin amount and confirm the investment stock and Qty, we deliver the stocks to the investors demat within 24 hours of the payment.

Planify has kept ₹ 25,000 as Minimum ticket size for the investment. Because it is the minimum amount to understand the proper growth of a portfolio. We have kept a lot of 50 shares. We also provide less than 50 shares of the companies like HDB Financial and Reliance Retail etc.But For investments below ₹ 25,000 we charge ₹ 100 as brokerage on the full transaction. For example, many of the investors say that they want to invest 10000 per month in the pre-IPO market instead of investing in Mutual Fund SIPs. We also do that for them.

Buying shares from Planify is similar to escrow facility provided by banks. After confirming the Investment details like price, quantity etc, the Investor has to transfer the investment amount to Planify’s bank account. Once we have the investment amount we buy the shares from the seller and deliver it to your Demat.

Unlisted Market is an unorganised market. planify provides an organised structure to invest in pre-ipo market. Like the taxi market already existed but OLA and Uber organised this market.Unlisted dealers act as channel partners/agents not an institution to various stock brokers. you can buy or sell the shares through the unlisted dealers or you also can invest through the Planify.

Unlisted Market is an unorganised market. planify provides an organised structure to invest in pre-ipo market. Like the taxi market already existed but OLA and Uber organised this market.Unlisted dealers act as channel partners/agents not an institution to various stock brokers. you can buy or sell the shares through the unlisted dealers or you also can invest through the Planify

No. Our channel partners only act on our behalf; they cannot demand any payment from you in their accounts. Planify only partners with people who are SEBI registered and have all the necessary certificates to act as a distributor in the market such as:
- AMFI license
- SEBI registered advisors
- IRDAI certification

Apart from having all the necessary registrations and certificates, Planify builds trust with its investors by means of social proof. for example planify is rated 4.9 out of 5 on google and 5 out of 5 on facebook.

In the Pre- IPO market  we try to provide high growth prospects companies shares to our investors. As PreIPO shares are issued during the high growth phase in comparison to listed stocks. For example reliance retail which is an unlisted company growing with 85% growth rate on the other side Reliance Industry which is a listed company growing with 15% growth rate. So there are many stocks in pre pre-IPO market which are in their growth phase. We suggest to our investors to buy those shares which are in growth phase and suggest to sell  those shares, we feel that the stock is overvalued or the company has not so much growth now. For example We suggested RBL banks Share at 60 per share to our investors and said to sell at 400 per share. on the other side IPOs are issued at a premium which is decided by Merchant banks.

Yes,It is possible for good PreIPOs to list higher than IPO price band because once the company comes with an IPO, demand for the share rises and therefore its price increases. Before making any investment in Pre IPOs you should look for that the share is either highly overvalued, overvalued, fairly valued and undervalued, you also should look for growth, Management and accounting practices all these points you will get in our research report.

Investors get all the necessary details regarding IPO like Price band, IPO date, no of shares etc in our research reports. We keep a close track on the DRHP filing date of the company with SEBI.

DRHP (draft red herring prospectus) is a legal document which every company looking to go public files with SEBI and once it is approved by SEBI, IPO shares are issued in the market. It takes around 1 year for the IPO to be issued once SEBI approves the DRHP. In case the company does not issue an IPO within a year, then the company has to start the IPO process from the beginning, it means the company has to file DRHP. Generally we see after approving of the DRHP from SEBI side, companies issue their IPOs within 3 to 4 months.

Price band is decided by the Merchant banker using a book building process after they receive bids for the IPO, hence, it is not possible to predict the price band of the IPO.We should try to track what is the growth prospects and valuation of the company rather than try to track the price band of shares.

Investors can sell their shares in the market with the help of Planify even if the company does not come up with an IPO. Most of the investors invest in the pre ipo with the prospects that the company will issue its IPO in the Future. For Example SoftBank invested in the paytm only one condition that the company will have to issue its IPO within 3 to 5 years.

Merchant Banks issue shares at a hefty premium in IPOs to increase their fees therefore, it's better to invest before an IPO issue by buying PreIPO shares. By investing before an IPO issue an investor increases his ROI.

Yes. Pre-IPO can be traded over the counter before being listed on exchange. However, SEBI might freeze some of the shares going for IPO if it suspects that operator play can trap retail investors in this counter.

Investors having PreIPO shares in their Demat can sell these shares in two ways:
- Can sell to other investors with the help of Planify
- At the time of IPO issue investor can sell his shares in IPO to other retail investors

At Planify we prepare financial reports of the Pre IPO companies. In these reports we analyse each and every aspect of the company like valuation, Growth, Management, Accounting Practices, Ratio Analysis,operating efficiency and peer Comparison etc. Considering all these parameters we rate companies out of 5 and give recommendations on whether one should buy, hold, or sell the share.

Yes.Usually The prices of PreIPO shares change  overnight, daily or weekly basis due to supply and demand of the share. We share a tentative price list of all pre-IPO shares to our investors and channel partners on Whatsapp so that there can be transparency regarding the price of shares. And we are developing our site where in future you would be able to see real time prices changes.

Yes. If the company issues any dividend, bonus or split then investors of the company will get these benefits. For example Tamilnad Mercantile bank which has given 1600 dividend per share on the face value of 10 per share in previous years after that they split 1 share into 500 bonus shares. So you will get a dividend on pre ipo shares like on the listed shares.

Planify is a fintech startup working to structure the unorganized market of PreIPo shares at the same time building a private equity exchange to facilitate easy transfer of shares among various investors whether HNIs, UHNIs, or retail investors. We also provide detailed research reports to our investors. so that also can analyse the company and can take the decision to invest in the company.

Financial reports of PreIPO shares are not readily available in the public domain but institutions working in this space have access to these financials

Yes, NRIs can invest in PreIPO shares by using their NRO account. In case the investor does not have an NRO account but has an NRE account then the investor needs to file FC-TRS form along with a certificate from a chartered accountant. Once the FC-TRS form is approved by RBI then the investor can make the purchase from NRE account.

Planify operates from Gurgaon city in Haryana.