Unlisted/Pre-IPO Shares

Why not get the shares before they are listed at the most reasonable rates? We promise to give you the lowest price while buying and the highest while selling on selected The Best Shares. We transfer the shares or payment within one hour.

Learning about this trade in just a few minutes: F & Q of Unlisted Shares

LEARNING ABOUT
Pre-IPO/UNLISTED SHARES INVESTMENT

1. Q1. What are pre-IPO/Unlisted shares?
   

   ANSWER: Pre-IPO shares are the shares that are not listed so far in any stock exchange. They are in Demat form but still unlisted. No one can predict the exact date when the shares will be listed or its IPO will come.

2. Q2. Is Pre the IPO market and grey market the same?
   

   ANSWER: No, pre-IPO shares are available for sale and purchase, whereas, in the gray market, there are those shares that are yet to be listed. Some people do speculation of shares that are going to be listed very soon and that is usually called gray market share. For example, if the price of a pre-IPO/unlisted share is Rs 100, the IPO price is Rs 150, and the expected opening on the first day is Rs. 200, people do "Satta" before the IPO opens and that is called gray market share price. Gray market activity is illegal and should be avoided.

3. Q3. Is working in this field legal?
   

   ANSWER: Yes; it is very much legal as long as you are doing all the transactions through a banking platform.

4. Q4. How are the prices of pre-IPO decided?
   

   ANSWER: There are two factors which decide the price:

   • Demand and supply.
   • Financials of the company.

5. Q5. What is the process of investment? When and how will shares come in the Demat account?
   

   ANSWER: The buyer has to make payment before buying and the shares are transferred from Demat to Demat account. It comes within a day or two, provided there are no holidays.

6. Q6. When do we give delivery?
   

   ANSWER: Normally it is done within 1 hour during office hours.

7. Q7. Who are the unlisted dealers?
   

   ANSWER: Anyone who is dealing in pre-IPO or unlisted shares.

8. Q8. Why should I go for pre-IPO stocks when listed shares are available?
   

   ANSWER: Good question! Normally we get the unlisted shares cheaper than the listed shares in the same sector.

9. Q9. What can be the minimum investment?
   

   ANSWER: Minimum investment should be in 6 figures. However, for salaried people, we have special respect & they can make the investment at their convenience.

10. Q10. Explain the selling process in the pre-IPO Market.
    

    ANSWER: There are a number of players who are buying and selling unlisted shares, you can find them easily on Google. Whosoever is giving you the best price, you can deal with him/her.

11. Q11. Why should we choose Fairdeal & why should we join you?
    

    ANSWER: We have the lowest spread in buying and selling of shares:

    • When you buy shares, we give you the cheapest price.
    • When you sell, we give you the highest price.

12. Q12. From where does Fairdeal operate?
    

    ANSWER: We operate from Jalandhar and Chandigarh area.

13. Q13. How can shares come in Demat before IPO?
    

    ANSWER: There is a slip (called DIS) that is given or procured from the share broker where you have an account. The seller gives that slip to his broker to transfer the shares into the buyer's account. This way shares get transferred from one Demat to another. However, we have a digital facility to transfer shares online.

14. Q14. How do we procure these shares?
    

    ANSWER: There are plenty of buyers and sellers of these shares. You can Google it and find these people. They will quote you the price of buying and selling both, but it is better to deal with known people to avoid any problems.

15. Q15. Why doesn't my stock broker provide a pre-IPO?
    

    ANSWER: Everyone doesn't need to do both things as we do.

16. Q16. How much investment should be made?
    

    ANSWER: You can make 50% plus investment of your total portfolio. We did 110% plus.

17. Q17. What is the minimum number of shares that can be bought in pre-IPO? Do we get any discount if we buy more quantity?
    

    ANSWER: In the share market, the more the demand, the higher the price. There is no question of discount or extra charges. It is the availability that matters. If more are available, prices will go down; if there is a shortage, prices will go up.

18. Q18. Any minimum ticket size?
    

    ANSWER: There is no minimum or maximum ticket size; it is based on the buyer's investment capacity.

19. Q19. Do I have to transfer the amount to Fairdeal or to the person I am purchasing the shares from?
    

    ANSWER: If you are buying from us, then you have to transfer the amount to us.

20. Q20. Will I be able to sell shares without the help of Fairdeal?
    

    ANSWER: You can sell it anywhere in India, to anyone who is giving you a better price.

21. Q21. Can unlisted/listed dealers default?
    

    ANSWER: Yes, they can. You have to see the goodwill of the person before dealing. Be careful and deal with known people/old brands only.

22. Q22. Why trust Fairdeal?
    

    ANSWER: We have had this brand since 1989 and have never ever made a default at any stage with anyone. It is better to verify about us from any big business house in Jalandhar or from the locality where we are living/office. You can ask anyone in this field anywhere in India.

23. Q23. Why are my stock broker prices way higher than what you are offering?
    

    ANSWER: We have the smallest spread between buying and selling, whereas some dealers want to become rich overnight.

24. Q24. Can your channel partners default?
    

    ANSWER: We will recommend you to do billing and payment directly in the name of Fairdeal Money Mart Pvt Ltd. rather than in the name of our channel partner.

25. Q25. Can I buy these shares in cash?
    

    ANSWER: No. We don't do anything which is illegal and out of SEBI Rules. No cash dealings.

26. Q26. When to get out of share?
    

    ANSWER: When you need money or when the targeted price is reached or when the targeted period is reached or a mix of them.

27. Q27. Will the Pre IPO or unlisted shares be cheaper?
    

    ANSWER: Yes, most of the time (99.9%).

28. Q28. Do you have all types of unlisted shares readily available?
    

    ANSWER: Not necessarily. We deal in liquid stocks but we can arrange other stocks too.

29. Q29. What will be the IPO price band?
    

    ANSWER: That is decided by SEBI and the company based on financials given by the company.

30. Q30. What if the IPO is not launched? Then will I be able to liquidate the share?
    

    ANSWER: Yes, anytime. But sometimes illiquid stocks spread is huge.

31. Q31. Which business will grow in the next 5-10 years?
    

    ANSWER: Technology, health care, consumer, financial sector, games, etc. are the sectors which we expect to grow faster than the others.

32. Q32. Can we sell these shares to our friends and family if we need liquidity?
    

    ANSWER: Yes, you can sell or gift anyone within the family.

33. Q33. How do we analyze whether a company is good or bad?
    

    ANSWER: We have the financials of each company to ascertain/decide about the company.

34. Q34. Can prices of Pre IPO shares change?
    

    ANSWER: Yes, it changes as other listed shares.

35. Q35. Will I get a dividend, bonus, or split before the IPO?
    

    ANSWER: Yes, this is as and when any company declares.

36. Q36. The share is already expensive, will its IPO be even more?
    

    ANSWER: There are certain parameters that decide expensive or cheap and not the price. A share of Rs.15000 can be cheap, and Rs. 15 can be expensive. The major factors are EPS, PB, PE, BV, etc.

37. Q37. How can I analyze a pre-IPO since its financials are not available publicly?
    

    ANSWER: There is no share or company in India whose financials are not available. Nowadays, many companies publish even quarterly results.

38. Q38. Can NRIs invest in Pre IPO?
    

    ANSWER: Yes.

39. Q39. If no residence proof, can a person invest?
    

    ANSWER: No.

40. Q40. Is the share market a market of regret?
    

    ANSWER: Yes, you regret when the price goes down after your purchase, and you also regret when the price goes up after selling.

41. Q41. Then what should one do?
    

    ANSWER: We should have the target in terms of the period of investment or return on investment. After that, you sell it and let it increase further.

42. Q42. How long should the investment period be in unlisted or listed shares? What if we don't need money even on a targeted date?
    

    ANSWER: If we transfer our land, buildings, gold, etc. to our new generation after our death, then why not share also.

43. Q43. How to open a Demat account?
    

    ANSWER: You have to provide an account opening cheque (Name printed), else passbook or bank statement, a photo, an Aadhar card (front and back both), a PAN card, and an investment cheque or direct Transfer to our account through NEFT/RTGS.

44. Q44. What is the Income Tax on the Profits of these shares?
    

    ANSWER: If you sell the shares in less than 2 years then the income will be added to your existing income and taxed according to your Income Tax Slab. If you are selling after 2 years then LTCG will apply. It's 12.5% as of today.

45. Q45. Who should invest?
    

    ANSWER: Anyone, who can see volatility and has a long period in hand. The maximum period has no limit but the minimum should be 3 to 5 years. (To get income tax benefits also).

46. Q46. Has (the Fairdeal Family) invested in these shares?
    

    ANSWER: Normally we don't sell what we don't buy for ourselves first. We have invested approx. 110% of our investment into different types of unlisted shares only. We have also put borrowed money in this.

47. Q47. Can we get the current price of unlisted shares as we get of listed shares?
    

    ANSWER: Since there is no stock exchange operating for unlisted shares, the prices of these shares can't be found so easily. However, there are many big brokers who have made their websites to know buying and selling prices. One broker has given a transaction facility, but it is limited to a few shares and for buying only. You can't sell your shares through their platform so far.

48. Q48. What is Fairdeal's profitability?
    

    ANSWER: We charge 1% to 4% as our profit depending upon share to share, quantity, and amount. Our margin comes from our cheap purchase. You still get the cheapest in the market. We trust in the quantity of business with less profit. If someone is investing a big amount, we reduce our margin.

49. Q49. Am I getting the fair price?
    

    ANSWER: Yes, you can check before buying from anywhere in India. We are always competitive. The reason is our purchase is from the wholesale market, and further, we are taking very few profits.

50. Q50. What are your consultancy charges?
    

    ANSWER: Our price includes the consultancy and research charges. But if you need extraordinary time, then it applies, and that is on a time-consumed basis.

51. Q51. Is it (investment in shares) a speculation?
    

    ANSWER: Yes and No. If you buy shares today and sell them tomorrow, it's a speculation. If you are buying today and selling after your target, then it is an investment.