Should I buy unlisted shares in India? Which companies are good?

fireboltt

InvestorRaj NEW
Posted 5 days ago
Hi everyone,

I have around 5 lakhs to invest and my friend told me about unlisted shares. He says returns are much better than listed stocks but im not sure if its safe or not. Can anyone tell me is it good to buy unlisted shares in india? And which compnies should I look at?

I heard HDB Financial services, NSE and some startups are available. Please advice.

fireboltt

MarketKing2019
Posted 5 days ago
Unlisted shares can give good returns but also high risk. You need to be carefull because there is no liquidity - means you cant sell anytime you want like regular stocks.

I have been investing in unlisted shares for last 3 years. Some of my picks:

HDB Financial Services - very solid company, part of HDFC group. Price is around Rs 1200-1300 per share currently. They are planning IPO soon so could be good opportunity
Reliance Retail - trading at premium but good longterm bet. Around Rs 2400-2500 range
NSE (National Stock Exchange) - always in demand, price is high though, around Rs 3500-4000

Make sure you buy from reputed dealers only!!

fireboltt

PriyaSharma
Posted 4 days ago
@InvestorRaj - if your new to investing then unlisted shares might not be best idea. Very illiquid and price discovery is difficult.

But if you still want to try, start with small amount first. Don't put all 5L in unlisted.

fireboltt

AshokMehta_Finance
Posted 4 days ago
"HDB Financial Services - very solid company"
I agree with @MarketKing2019. HDB Financial is one of the best unlisted share opportunity right now. They have strong fundamentals and HDFC Bank backing. IPO is expected in next 12-18 months according to market rumors.

Other good options in my opinion:

Oyo Rooms (if you can get at reasonable valuation)
Byju's (risky but high growth potential)
National Stock Exchange
PharmEasy (healthcare sector is booming)

Average returns from unlisted shares can be 25-40% annually if you choose right companies. But like others said, liquidity is major issue.

fireboltt

skeptical_investor
Posted 4 days ago
Be very very careful guys. I lost money in unlisted shares of a startup that went bust. The company was valued at 500cr and within 2 years completely shut down. My 2 lakh investment became zero.

Only invest in companies with proven business model and profitability. Dont chase valuations. Do proper research on financials before investing.

fireboltt

RahulG_Mumbai
Posted 3 days ago
Some other unlisted companies worth looking at:

Sterlite Power - infrastructure company, good track record
Tata Technologies - recently got listed actually, was good unlisted opportunity
Bharti Airtel Infratel - telecom infrastructure
Apollo HealthCo - part of Apollo hospitals group

Price range varies alot depending on demand and supply. You need to check with dealers for current prices. Also remember there is usually minimum lot size for unlisted shares.

And YES liquidity is biggest challenge. Sometimes you wont find buyers even if you want to sell urgently.

fireboltt

InvestorRaj NEW
Posted 3 days ago
Thank you everyone for valuable inputs! This is very helpfull.

So from what I understand - HDB Financial, NSE, Reliance Retail are relatively safer bets. And I should only invest amount that I can hold for longterm.

Where do you guys buy from? Any trusted platforms or dealers you can recommend?

fireboltt

MarketKing2019
Posted 3 days ago
I use Planify and UnlistedZone for buying unlisted shares. Both are quite reliable. There are also individual dealers but I prefer platforms as they give some assurance.

Always ask for proper documentation - share certificates, transfer forms etc. And verify the shares are genuine before making payment.

👍 5 people found this helpful

fireboltt

DeepakPatil_Pune
Posted 2 days ago
One more thing to consider - taxation on unlisted shares is different. Long term capital gains on unlisted equity shares is taxed at 20% with indexation benefit (if held for more than 24 months). For listed shares its 10% without indexation.

So factor in tax implications also while calculating returns.

My portfolio has about 15% in unlisted shares - HDB Financial, Reliance Retail and one fintech startup. Rest is in listed equities and mutual funds. Diversification is key!

fireboltt

Neha_Joshi
Posted 1 day ago
Has anyone invested in Pharmeasy unlisted shares? They were doing well but heard recent performance is not so good. Current price is around Rs 25-30 per share which seems cheap compared to their peak valuation.

Is it worth buying at current levels or should avoid?

fireboltt

AshokMehta_Finance
Posted 1 day ago
@Neha_Joshi - PharmEasy has faced some challenges recently. Valuation has come down significantly. At Rs 25-30 it might be good entry point IF you believe in longterm story of online pharmacy in India. But its high risk high reward situation.

Personally I would stick to more stable unlisted companies like HDB Financial or NSE rather than loss making startups. But thats just my opinion, do your own research.