Investing in unlisted shares has gained popularity among investors seeking high-growth opportunities beyond traditional stock markets. Unlike listed shares traded on NSE or BSE, unlisted shares belong to private companies that have not yet gone public. While riskier than regular stock investments, buying and selling of unlisted shares at the right time can help build a million-dollar portfolio over time.
This blog will explore strategies, key factors, and real-world insights to help investors maximize returns through unlisted share investments.
What Are Unlisted Shares?
Unlisted shares refer to the equity of privately held companies not available on public stock exchanges. These shares are typically held by venture capitalists, private equity firms, employees, and early-stage investors.
Some of the most sought-after unlisted shares in India include:
- Reliance Retail
- OYO Rooms
- Tata Technologies
- PharmEasy
- HDFC Securities
Since these shares are not actively traded, their prices are determined by factors such as company performance, funding rounds, market demand, and future IPO potential.
How to Build a Million-Dollar Portfolio with Unlisted Shares
- Invest Early in High-Growth Companies
One of the most effective ways to achieve significant returns is by investing early in high-potential companies before they go public.
Pro Tip: Monitor companies with strong business models, innovative products, and increasing market share.
- Leverage Pre-IPO Price Surge
Unlisted shares often experience a surge in valuation as the company approaches an IPO. Investors who sell unlisted shares before an IPO can lock in high returns. - Diversify Across Multiple High-Growth Sectors
To reduce risk, investors should diversify their unlisted share holdings across different sectors like:
- Technology – (e.g., Zepto)
- Retail – (e.g., Reliance Retail)
- Fintech – (e.g., Zerodha)
- Healthcare – (e.g., PharmEasy)
By spreading investments across multiple industries, investors hedge against sector-specific downturns.
- Understand the Demand-Supply Game
Since unlisted shares have limited availability, their prices fluctuate based on demand. When investor interest in a company spikes, selling unlisted shares at peak demand can yield maximum profits.
- Optimize Tax Efficiency
Investors must understand the tax implications before selling unlisted shares:By holding shares for over two years, investors can significantly reduce tax liability and maximize post-tax profits.
| Holding Period | Tax Rate |
| Less than 24 months | 12.5% (short-term capital gains tax) |
| More than 24 months | 20% with indexation (long-term capital gains tax) |
How to Buy and Sell Unlisted Shares?
Investors can buy and sell unlisted shares through:
- SEBI-registered intermediaries (e.g., InCred Money, UnlistedZone, SharesCart, TradeUnlisted).
- Private equity transactions
- Secondary markets
Pro Tip: Always verify company fundamentals, recent funding rounds, and market trends before making a transaction.
Conclusion
Building a million-dollar portfolio with unlisted shares requires a strategic approach, including:
- Early-stage investing in high-growth companies
- Selling unlisted shares at peak demand
- Diversifying across multiple industries
- Taking advantage of pre-IPO valuation surges
- Optimizing tax liabilities for higher net profits
By making well-informed decisions and leveraging market trends, investors can maximize wealth creation by buying and selling unlisted shares.
Check out InCred Money to explore opportunities in unlisted shares
Sources:
- SEBI Guidelines on Unlisted Securities – www.sebi.gov.in
- Economic Times – Investing in Unlisted Shares
- MoneyControl – Understanding Pre-IPO Valuation Growth
