Are you looking to invest in unlisted shares?
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Unlisted shares allow investors to invest in promising private companies before they go public. These companies are often in high-growth phases, enabling early investors to benefit from exponential returns once the company lists on the stock exchange. Investing in unlisted shares with Planify offers the potential for significant returns through early access to high-growth private companies. 

Unlisted shares provide access to sectors and innovations that may not be available in the traditional public market, ensuring portfolio diversification and potentially higher long-term gains.

These terms are often used interchangeably. However, they are not precisely the same.  Unlisted shares refer to shares of companies that are not listed on any stock exchange. These companies may or may not have plans to go public. On the other hand, Pre IPO shares are specifically shares of companies in the advanced stages of going public or companies expected to launch an Initial Public Offering (IPO) soon and have already filed their Draft Red Herring Prospectus (DRHP) with SEBI.

Therefore, we understand that Pre-IPO shares are a subset within the broader category of unlisted shares. 

Unlisted shares are categorized into various types, offering investors diverse opportunities to invest in private companies. The main types of unlisted shares include:

• Pre-IPO Shares: These are shares of companies that plan to go public soon. Investing in pre-IPO shares allows investors to enter at lower valuations before the company lists, potentially yielding significant returns post-listing.

  
  

• Preference Shares: These shares prioritize dividend payments and capital repayment during liquidation. While preference shareholders enjoy fixed returns, they usually do not have voting rights in the company.

  
  

• Startups & Unicorns: Some shares of startups and companies that need liquidation and ESOPs shares. shares offered by high-growth startups and unicorns, often through Employee Stock Options (ESOPs). These shares provide an opportunity to invest in early-stage companies with immense growth potential.

  
  

• SME Shares: SME shares issued by small and medium-sized enterprises (SMEs) provide investors with exposure to high-potential, growth-stage businesses that can deliver attractive returns as they expand and scale.

  
  

• Private Equity Shares: These shares represent ownership in private companies not listed on stock exchanges. Institutional investors or high-net-worth individuals often hold private equity shares seeking to invest in high-growth private businesses.

  
  

• Delisted Shares: Delisted shares belong to companies that were once listed on the stock exchange but have been removed. These shares continue to trade in the over-the-counter (OTC) market and can be a valuable investment option if the company’s fundamentals remain strong.

The minimum investment amount varies depending on the company and the broker facilitating the transaction. Typically, the minimum investment for unlisted shares ranges from ₹50,000 to ₹1,00,000, although it may be higher for premium companies. Planify provides investment options tailored to different investor needs.  Investors can contact Planify for specific minimums for available unlisted shares.

Tracking unlisted share prices involves monitoring over-the-counter (OTC) market platforms, specialized online portals, and brokerages that deal in unlisted securities. Tracking unlisted share prices requires regular market research and monitoring. While these shares do not trade on stock exchanges, Our platform provides regular price updates and insights based on recent transactions, supply-demand dynamics, and industry trends. Investors can also track price movements through private placement platforms and market intermediaries.

As per SEBI regulations, unlisted shares purchased before an IPO are subject to a lock-in period of six months after the company's listing on the stock exchange. During this period, investors cannot sell or transfer their holdings. However, liquidity can be limited, and selling might take time to find a suitable buyer, so consider your investment horizon. Planify offers solutions to facilitate transactions before a company goes public.

Determining the fair market value involves methods like discounted cash flow (DCF) analysis, asset-based valuation, and comparative analysis - the Comparable company method, with similar listed companies. Planify offers expert valuation services to help assess the intrinsic value of unlisted shares, providing investors with informed decision-making support. 

To convert physical unlisted shares to demat form, you must open a demat account and obtain a Dematerialization Request Form (DRF). Submit the physical shares along with the DRF to your Depository Participant (DP) and await confirmation from the company's registrar after verification. The physical shares are converted and credited to your Demat account upon approval. This process digitizes your holdings for easier trading and management.

Taxation of unlisted shares depends on the holding period. If sold within 24 months, gains are taxed as short-term capital gains (STCG) according to your income tax slab. If held longer, gains are taxed as long-term capital gains (LTCG) at 20% with indexation benefits. Additionally, dividend income from unlisted shares is taxed at the investor's applicable income tax slab.

Yes, physical shares of unlisted companies can be transferred. The process involves executing a transfer deed and submitting the necessary documents to the company’s registrar for verification and approval. The company will register the transfer in their records, provided all documentation is in order. However, to enhance security and ease of transfer, it is advisable to convert physical shares into dematerialized (demat) form.

Yes, unlisted shares can be sold before the IPO through private placement transactions, over-the-counter (OTC) markets,  or with the help of brokers specializing in unlisted securities. Planify offers a platform to facilitate such transactions, providing liquidity options before the company goes public. The ability to sell and the price you receive will depend on market demand and liquidity for the specific shares.