1. Buy Early, Sell After Listing (IPO Gains)

• Strategy: Buy shares of a promising company before it goes public and sell them after its IPO ( there is a waiting period of six month – lock in ) when prices often rise due to demand.

• Example: Buying NSE or Tata Technologies shares pre-IPO and selling them post-IPO for listing gains.

• Risk: If the IPO is overpriced or demand is weak, prices can fall after listing.

2. Long-Term Wealth Creation

• Strategy: Hold unlisted shares of fundamentally strong companies for several years.

• Benefit: You may benefit from compounding as the company grows and eventually lists at a much higher valuation.

• Example: Early investors in companies like Nykaa, Zomato, or Paytm made multi-fold returns over several years.

3. Secondary Market Trading

• Strategy: Trade unlisted shares in the secondary market (buy from existing shareholders, sell to new investors).

• How Profit is Made: Buy at lower negotiated prices and sell at a premium as demand rises.

• Tip: Requires good market connections, negotiation skills, and timing.

4. Arbitrage Opportunities

• Strategy: Exploit price differences between various sellers or platforms where unlisted shares are traded.

• Example: Buying cheaper from employee ESOP holders and selling at a higher price to institutions or HNIs.

5. Special Situations & Mergers

• Strategy: Invest in companies before corporate actions (mergers, buybacks, or IPO announcements).

• Benefit: Prices often rise when positive corporate news is announced.

⚠️ Key Risks to Consider

• Liquidity Risk: Harder to buy/sell quickly compared to listed stocks.

• Price Discovery Risk: No daily market price — value depends on negotiation.

• Regulatory Risk: SEBI rules may affect transfer process or holding period.

• Business Risk: If company performs poorly, you may lose capital.

📌 Points to reduce risk and for consider of good selection.

✅ Do thorough research on company financials and future prospects.
✅ Invest in well-known or soon-to-be-listed companies to reduce risk.
✅ Diversify — don’t put all your money into one unlisted share.
✅ Work with trusted intermediaries or platforms to avoid fraud.
✅ Stay updated on IPO pipeline and market sentiment.