Investing in unlisted shares has become one of the most exciting trends among Indian investors. With growing interest in pre IPO shares and early-stage companies, many are eager to learn how to buy unlisted shares in India safely and profitably.
This comprehensive guide will help you understand everything — from what unlisted shares are to the step-by-step process of buying them in 2025.
What Are Unlisted Shares?
Unlisted shares are equity shares of companies that are not traded on any stock exchange such as NSE or BSE. These companies may be start-ups, subsidiaries of listed entities, or private firms planning to go public in the future.
Examples of popular unlisted companies in India include:
- HDB Financial Services (HDFC Bank subsidiary)
- Tata Technologies (before its IPO)
- Reliance Retail
- Nayara Energy
Investing in such shares is known as unlisted shares investment, which can yield high returns when these companies eventually list on the stock market.
Why Should You Buy Unlisted Shares in 2025?
With the Indian IPO market booming, more investors are turning toward pre IPO shares for early entry opportunities. Here are some compelling reasons to buy unlisted shares India in 2025:
1. Early Access to Growing Companies
You get a chance to invest in high-growth companies before they go public — often at lower valuations.
2. Potential for High Returns
If the company lists successfully, your unlisted shares investment can generate exceptional returns, sometimes multiple times your initial investment.
3. Portfolio Diversification
Unlisted shares provide an alternative asset class, balancing the risks associated with traditional equity and mutual fund investments.
4. Opportunity to Invest in Market Leaders
Many well-known brands — such as Reliance Retail and HDFC Securities — started as unlisted firms. Buying their shares early offers strong potential for long-term gains.
Step-by-Step Guide to Buy Unlisted Shares in India
Here’s a simple and clear process to help you buy unlisted shares safely and effectively:
Step 1: Research and Identify Potential Companies
Start by shortlisting companies with solid financials, growth potential, and a strong management team. Look for firms that may launch an IPO soon or are performing well in private markets.
You can explore opportunities through reliable platforms like Grow More and More’s Unlisted Shares section, which provides verified information on leading private companies.
Step 2: Choose a Reliable Platform or Dealer
Unlisted shares cannot be bought directly on stock exchanges. Instead, they are traded through:
-
Authorized dealers and intermediaries
-
Employee stock options (ESOPs)
-
Private transactions through networks
Always ensure the platform you choose is SEBI-compliant and has a proven track record of transparent transactions.
Step 3: Check the Company’s Valuation and Financials
Before buying, analyze the company’s:
-
Revenue growth
-
Profit margins
-
Debt ratio
-
Future business prospects
Reliable platforms such as Grow More and More provide detailed insights to help investors make informed decisions.
Step 4: Complete the KYC and Documentation Process
You’ll need to complete your KYC (Know Your Customer) verification before investing. This usually includes:
-
PAN Card
-
Aadhaar Card
-
Bank account details
-
Demat account information
Once verified, you can proceed with the transaction.
Step 5: Execute the Purchase and Transfer of Shares
After choosing your company and agreeing on the price:
-
You’ll receive a Share Purchase Agreement (SPA).
-
Make the payment through bank transfer.
-
The seller transfers the shares to your Demat account.
The process usually takes 3–5 working days.
Step 6: Track and Monitor Your Investment
Once you own unlisted shares, keep track of company updates, quarterly results, and IPO announcements.
Platforms like Grow More and More offer regular insights and market analysis to help investors monitor their portfolios
Taxation on Unlisted Shares in India
Understanding tax implications is crucial before you buy.
- Short-term Capital Gains (STCG): If you sell unlisted shares within 24 months, the profit is taxed as per your income tax slab.
- Long-term Capital Gains (LTCG): If held for more than 24 months, LTCG is taxed at 20% with indexation benefits.
Keeping proper records of purchase and sale is important for accurate tax filing.
Key Things to Remember Before You Buy Unlisted Shares
- Liquidity Risk: Selling unlisted shares may take time as there’s no formal exchange.
- Valuation Uncertainty: Unlike listed stocks, prices are not updated daily.
- Limited Information: Private companies may not disclose all financial details.
- Patience Required: These are long-term investments; returns are often realized after IPOs or buybacks.
To minimize risks, always invest through credible platforms like Grow More and More Unlisted Shares, which ensures secure and verified transactions.
Benefits of Using Grow More and More for Unlisted Shares Investment
- Verified Sellers and Buyers: Ensures authenticity and transparency.
- Expert Guidance: Get insights from market professionals.
- Wide Range of Opportunities: Access to leading pre IPO shares across industries.
- Smooth Transaction Process: From documentation to share transfer — all handled securely.
Grow More and More bridges the gap between private companies and investors, making unlisted shares investment seamless and reliable.
Future Outlook of Unlisted Shares Market in 2025
As India’s start-up ecosystem continues to flourish, the unlisted shares market is expected to witness significant growth. More private companies are raising funds through private equity and pre-IPO rounds, giving retail investors an excellent opportunity to participate early.
Technological advancements, regulatory clarity, and increased investor awareness will further enhance transparency and liquidity in the coming years.
Buying unlisted shares can be a strategic investment decision for those seeking early exposure to high-growth companies. However, it’s essential to research thoroughly, choose verified platforms, and understand the risks involved.
Whether you’re exploring pre IPO shares or planning your next unlisted shares investment, platforms like Grow More and More make the process simpler, safer, and more transparent.
Ready to start your journey?
Visit Grow More and More Unlisted Shares today to explore top-performing private companies and take your portfolio to the next level.
FAQ's About Buying Unlisted Shares in India
Q1. What are unlisted shares?
Unlisted shares are equity shares of companies that are not listed on any public stock exchange like NSE or BSE. These include startups, subsidiaries, and private firms that may go public in the future.
Q2. How can I buy unlisted shares in India?
You can buy unlisted shares in India through trusted dealers or online platforms like Grow More and More
, which connect investors with verified sellers and handle the documentation process.
Q3. Is investing in unlisted shares safe?
Yes, but only when done through SEBI-registered intermediaries. Always check company credentials, financials, and valuation before investing.
Q4. What is the minimum investment required to buy unlisted shares?
It varies from company to company, typically ranging between ₹25,000 to ₹1,00,000 per transaction depending on share price and availability.
Q5. How are unlisted shares taxed in India?
Short-term gains (below 24 months) are taxed as per your income slab, while long-term gains (after 24 months) are taxed at 20% with indexation.
