Unlocking Hidden Potential: A Guide to Investing in NSE’s Unlisted Shares
Discover how to invest in unlisted shares for potential high returns, covering processes, benefits, and risks, as seen with NSE and CSK.
Investing in unlisted shares and stocks that aren’t yet listed on stock exchanges is a growing trend among investors seeking higher returns. But what is drawing both high-net-worth individuals and retail investors towards such options like Chennai Super Kings (CSK) and the National Stock Exchange (NSE)?
Growing Popularity and Investor Enthusiasm
The allure of investing in unlisted shares lies in acquiring stakes in promising companies before they hit the public market. According to News18, the number of retail investors holding NSE shares worth up to Rs 2 lakh surged to 1.46 lakh during April-June 2025, a significant rise from just 33,896 in the prior quarter. This surge indicates a growing interest in tapping into the potential early growth of such companies.
The Attraction for the Astute Investor
Unlisted shares often present an opportunity to buy into companies at lower valuations. “They could be available at discounted valuations,” shares Vijay Kuppa, CEO of Incred Money. This mirrors the strategy of purchasing listed stocks—seeking valuable assets at favorable prices. Rochak Bakshi, founder of True North Finance, points out, “These investors are betting on growth that the company will list and its value will surge.”
Navigating the Investment Process
To dive into the world of unlisted shares, retail investors can utilize online platforms, wealthtech firms, or wealth management services. Alternatively, shares may also be acquired through Employee Stock Ownership Plans (ESOPs). Completing a KYC process using PAN and Aadhaar details is a crucial step before engaging in any transactions.
Weighing the Risks
Despite the attractive prospects, investing in unlisted shares is fraught with risks. The absence of SEBI’s direct oversight necessitates cautious approaches. Liquidity— the ability to easily sell shares—can pose a formidable challenge and necessitates thorough research and a strategic exit plan.
Wise Strategies for Potential Success
Seasoned investors often allocate a small portion of their portfolios to unlisted shares, acknowledging the inherent risks. Comprehensive analysis—understanding a company’s financial performance and growth prospects—is key to making informed decisions. Unlisted shares present exhilarating returns, but only when approached with due diligence and prudence.
In conclusion, while unlisted shares open doors to promising opportunities, embracing them demands careful consideration and expertise akin to traditional stock investments. By investing wisely, you can position yourself to unlock substantial returns in the world of unlisted shares.