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Pre-IPO Shares

Pre IPO Shares are those shares that have not yet listed on the formal exchange – BSE or NSE. These are OTC Instruments (Over The Counter) and are settled between the two parties. While the initial source of such shares are company owners, but then there are ESOPs owners and then there are those, who already had bought these and are now selling the same.

These are in the unlisted space, and are privately traded, e.g., Nazara Technologies, ICICI Lomard, etc were privately traded before they went public. These Pre IPO Shares provide an enormous opportunity to make wealth, as it bring in the multiplier effect, s.a., 2x, 3x, 10x and so on; which is harder to see in the direct equities. However, this also bring in its own challenges, s.a., ticket size, liquidity and risk of capital loss. Therefore, these are not for all investors and a person investing should have the highest risk appetite. Moreover, if an investor is holding a Pre IPO Share, and it gets listed, one has to wait for 365 days / 1 Years before he could sell it off; this is called as the cooling period.

Our Core Values

We offer access to investors with the crucial information required for financial stability. Also, we act as enablers and transaction facilitators for buyer and seller to matching the trade.

We wish to offer some profoundly esteem improving open doors in this space for your consideration to assist you with accomplishing your financial objective and well-being. Simultaneously, it is our obligation to high light the speculation reason and a portion of the danger components of unlisted ventures before you finalize any investment choice.

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Yes, its safe to buy Pre-ipo shares from Finogent Advisory as the scrips are credited into your DP Holdings within 7 working days.

One should keep this in mind while investing im Pre-IPO scrips – “A good company with an IPO provides a very attractive opportunity to have the money multiplied; since, the investor enters 6 months – 2 years prior to IPO and when the value unlocks at the IPO, provides an attractive gain.”

There is no such investment horizon. But the Pre-IPO scrips are traded in Lots. Also ,being wealth managers we recommend a minimum investment amolunt of 5lakhs while investing in Pre-Ipo scrips.

Income Tax on Trading in unlisted shares is similar to the tax treatment of other capital assets. The following are the income tax rates on the sale of unlisted shares of a Domestic Company or Foreign Company.Long Term Capital Gain – 20% with Indexation;Short Term Capital Gain – taxed as per slab rates

Yes ,One can buy but after the approval of authorities

One can expect huge capital gains after investing in Pre-IPO scrips after listing of those scrips on exchange.

Unlisted equity share is the unit capital of that company i.e. not listed and cant be traded over exchange in open market.

Yes ,Being an alternative investment class, FINOGENT ADVISORY LLP provides pre-ipo scrips to their clients.

One should have a time horizon of 3-5 years while investing in Pre-IPO Scrips

Risks involved in Pre -ipo scrips are their liquidity.sometimes, it may become difficult to buy a seller of same securities.Also ,as they are traded over the counter ,it may take more time,charges and efforts.

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