Want To Invest In Pre-IPO Shares? Here’s How.


Want To Invest In Pre-IPO Shares? Here’s How.

The stock exchange market is crowded with innumerable investors aspiring to spin their money. The wheel of the stock exchange doesn’t make favor to sp

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The stock exchange market is crowded with innumerable investors aspiring to spin their money. The wheel of the stock exchange doesn’t make favor to specific investors. Profits and returns are destined and rooted in the potential of the company’s growth.

Companies sell large segments of their shares to investors before its launch. The sale of pre-IPO shares determines the capability of business sustainability. Those venture capitalists raise funds and support the companies to meet their capital requirements.

When the unlisted pre IPO shares boom in the equity market, then the capital gain income of the companies outstrip the investment amount.
To increase your profit margin, invest in pre IPO companies as per your profitable interest.
Constituents of private equity marketplace

Pre IPO Shares – Companies run their business on funds raised via debt or equity. Investors expect good benefits from the companies when they raise funds via equity. If they want to exit from the shares after few years and offer them to other investors, companies plan for IPO for such investors. This information is made public and draws media attention. Unlisted Assets allow investors to invest in these IPOs before their launch.

Unlisted shares – They refer to the shares excluded from the list of NSE or BSE and do not have an IPO plan in the upcoming days. Many companies provide attractive dividends to investors having holdings in the unlisted space. These shares are a good investment alternative but illiquid trading projects the complexity for investors.
Delisted Shares: When the unlisted companies do not adhere to the circulations as per the requirements of the trading market, their shares are delisted from the stock exchanges and do not trade in that period.

Taxation of pre-IPO shares

As per the Income Tax Act, the profit from the sale of unlisted shares is capital gain income. For less than 2 years, pre-IPO shares are taxed as STCG (Short term capital gain). If the shares of unlisted stocks are held for 24+ months, then the gain extends for LTCG (Long term capital gain) and will be taxed at 20% followed by 4% health and education tax. Pre IPO shares are exempted from GST or security transaction tax (STT).

How to find the pre IPO shares dealers?

Research about the company and its offerings:

It is extremely important for you to calibrate the legality and security concerns of the company when you decide to buy the pre-IPO shares. For a registered or exempted company, there are chances of it being legal. Otherwise, avoid assistance from unregistered companies. Check the details of the state-specific security regulations and the conditions under which pre-IPO shares are offered.
Since the pre-IPO shares’ dealing is private and the share price circulates only among the buyers and sellers, it becomes difficult for individual investors to know the insights. Unlisted Assets help new age investors to acquaint with the market fluctuations and the best time to invest in pre-IPO shares. We deal in the safe trading of unlisted shares.