How to Buy Unlisted Stocks?

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The unlisted stocks, as the name suggests, are the ones that are not listed in the official stock exchanges. They are traded independently, without BSE or NSE. But wondering how to buy unlisted stocks?

There are many companies, the big ones that have their subsidiaries or private stocks that are not listed but are available for trading.

Some various other individual small businesses and start-ups have some unlisted stocks put up for investing. 

If you are interested in buying those unlisted stocks then here we are with the complete information that gives you a complete idea of how to buy unlisted stocks?

Also Read: Listed vs Unlisted Stocks

Let’s get started!

How to Buy Unlisted Stocks in India?

There have been a lot of theories regarding the buying and selling of unlisted stocks. Though it is a tiring and risky process, if done correctly, it can yield positive results. 

There are various ways in which you can invest and buy unlimited stocks. 

The various ways of investing in unlisted stocks are as follows. 

  • Start-ups
  • Through their employees
  • Promoters 
  • AIF associated with unlisted stocks 

Let us understand each of these individually now. 

1. Start-ups 

Some various small businesses and start-ups can help you invest and buy stocks at a minimum price. They are new-age and therefore, have a lot of new ideas and innovations. 

Apart from the minimum investment and new opening, these unlisted shares are a little challenging to sell. If you buy stock in a start-up, you will get delivery after three days of the trade. 

2. Employees of own company 

Many companies give their employees the full opportunity to buy the unlisted stocks of their company. 

This is also a great way to start and buy unlisted shares if you are beginning with the unlisted stocks. Brokers can quickly advise you regarding such investments. 

3. Promoters 

Generally called private placement, many investment banks render help in purchasing the unlisted stocks. You can directly buy from these promoters. 

4. AIF and PMS 

Another way is the AIF and PMS that pick up unlisted shares. You can invest in pre-IPO funds, the ones that will be listed sooner or later. 

These are the various ways/channels discussed above through which you can invest and buy in unlisted stocks. Now, let us have a look at how to buy unlisted stocks in India? 

To buy an unlisted stock it is essential to do a proper analysis of these stocks. Since these stocks are not listed in the stock exchange therefore it is a little difficult to do the fundamental or technical analysis in a proper way. 

However, you can gain proper insight by gaining complete knowledge and understanding of the company. 

Next comes the choice of broker. The new-age companies and businesses do not give the guarantee of a sale. So, it is essential that you look it through and then invest. 

Though it is difficult to predict the unlisted stocks’ price, some platforms are willing to ease this process for you. You can easily take the help of these platforms and yield positive outcomes. 


Best Unlisted Stocks to Buy

Now that we know the various ways in which you can invest and buy unlisted stocks, you must be wondering which are the best-unlisted stocks to buy? 

Here is a list of the best-unlisted stocks that you should consider buying to get great results. 

  • HDB Financial Services (Unlisted Shares)
  • Motilal Oswal Unlisted Shares (Home Finance)
  • Reliance Retail Unlisted Shares 
  • HDFC Securities Limited Unlisted Shares 
  • Religare Health Insurance Company 
  • Hero Fincorp Limited Unlisted Shares 

The above-given stocks have carved a niche in their industry and will give you good results if you buy them. 


Conclusion

Investing in the stock market can often come as a dilemma for investors. There have been many past cases in which the investors have suffered significant losses because of investing in unlisted stocks.

But the endpoint remains the same: if you are investing in the stock that you truly trust and know, it will be more beneficial.

There are various ways to invest in unlisted shares ranging from start-ups to PMS picked up by unlisted stocks. You can consult your broker and support even in the pre-IPO shares.

These shares have the capability of entering the IPO league.

With the proper understanding, you can trade even in the stocks that are not officially listed with either the Bombay Stock Exchange or National Stock Exchange.

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