Investors are always looking for the next big company before it becomes mainstream.

One way many sophisticated investors do this is by investing in unlisted shares — equity in companies that are not yet listed on stock exchanges like NSE or BSE.

At Altius Investech, we help investors access opportunities in the pre-IPO and unlisted shares market, allowing them to explore companies that may eventually go public.

In this guide, we’ll explain:

What unlisted shares are
Why investors buy them
How to buy unlisted shares in India
Risks and return expectations

Table of Contents

📌What Are Unlisted Shares?

Unlisted shares are equity shares of companies that are not listed on a recognized stock exchange.

These companies may be:

late-stage startups
private companies preparing for an IPO
subsidiaries of large listed companies
established firms that simply remain private

Even though they are not listed on exchanges, these shares are real equity securities and can often be transferred through the DEMAT system using CDSL or NSDL.

Many investors buy unlisted shares because they want exposure to companies before they become publicly traded.

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🚀Why Investors Buy Unlisted Shares

The biggest reason investors buy unlisted shares is simple:

They want to invest before a company goes public.

When companies list on the stock market through an IPO, valuations often increase because of:

institutional investor demand
public market liquidity
media attention

Investors often buy shares in the pre-IPO stage, hold them as the company grows, and eventually gain liquidity when the company lists on the stock exchange.

However, investors should be aware that shares acquired before an IPO may be subject to a post-listing lock-in period.These shares have a 6-month lock-in from the listing date.

🪙Minimum Investment in Unlisted Shares

A common misconception is that investing in private companies requires extremely large capital.

In reality, the minimum investment to buy unlisted shares is typically around ₹10,000.

However, many investors prefer to allocate larger amounts to build diversified portfolios across multiple companies.

🌍 Can NRIs Invest in Unlisted Shares?

Yes, Non-Resident Indians (NRIs) can also invest in unlisted shares in India, subject to certain conditions.

NRIs typically invest through:

Bank Account: NRO (Non-Resident Ordinary) Bank Account
DEMAT Account: NRI Non-Repatriable DEMAT Account

Investments made through this structure are non-repatriable, meaning the funds generally remain within India unless permitted under RBI guidelines.

This allows NRIs to participate in India’s growing pre-IPO and private market ecosystem.

💰 How Are Unlisted Share Prices Determined?

One of the most common questions we receive from investors is:

If there is no exchange, how are prices determined?

In the unlisted market, pricing typically reflects a combination of factors:

the company’s most recent funding round valuation
financial performance (revenue, profitability, growth trajectory)
valuations of comparable listed companies
supply and demand in the secondary market

For example, if a company recently raised capital at a specific valuation, that funding round often acts as a benchmark for secondary market pricing.

At Altius Investech, we closely track factors such as recent funding rounds, company financial performance, growth trajectory, and valuations of comparable listed companies in India to help investors understand fair market pricing for unlisted shares.

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Unlike listed stocks, unlisted share prices typically do not move minute-by-minute.

Instead, prices adjust when significant events occur, such as:

new funding rounds
strong financial results
DRHP filings
IPO announcements

This slower price discovery often means less day-to-day volatility than public markets.

📈 What Returns Can Investors Expect?

Historically, pre-IPO investments have generated strong returns when companies reach key liquidity events such as:

listing on stock exchanges through an IPO
raising funding at higher valuations
strategic acquisitions or buyouts

However, it is important to understand that returns in the unlisted market are not guaranteed and depend on multiple factors including company performance, market conditions, and timing of liquidity events.

Investments in unlisted shares also typically require a longer holding period of around 2–5 years, as investors wait for events such as IPOs, funding rounds, or strategic transactions to unlock value.

Over the years at Altius Investech, we have tracked and initiated coverage on several companies while they were still part of the unlisted market, well before their eventual IPOs. Investors who entered these opportunities early were able to benefit when these companies later listed on the stock exchanges.

The table below highlights several examples where early coverage in the unlisted market translated into strong returns at the time of IPO listing.

🔒 How to Buy Unlisted Shares in India

To buy unlisted shares with us, here is a simple process of making an investment quick and simple.

Sign Up & KYC: Start by signing up on the platform ( https://trade.altiusinvestech.com) and complete the Know Your Customer (KYC) process, ensuring a secure and compliant onboarding.
Place Order: Choose the unlisted shares you wish to buy, then place your order with the specified quantity.
Complete Payment: Once the order is placed, make the payment through the provided payment methods, ensuring a smooth and transparent transaction.
Quick Execution: Experience fast execution, with your trade completed within 24 hours. This ensures a prompt and efficient process from order placement to share ownership.

⚠️ Risks of Investing in Unlisted Shares

While unlisted shares can offer attractive opportunities, they also carry certain risks.

Liquidity Risk

Because these shares are not traded on stock exchanges, selling them quickly may not always be possible.

Limited Public Information

Private companies may disclose less information than listed companies.

Market Access

Investors typically need access to specialized intermediaries or marketplaces to buy or sell shares.

🏁Final Thoughts

The unlisted market is becoming an increasingly important part of India’s investment ecosystem.

For investors who want to buy unlisted shares and participate in companies before they go public, this market offers a unique opportunity.

However, like all investments, it requires:

patience
proper research
and a long-term investment horizon

📜 Disclaimer

(Data as of March 09th, 2026, from public sources & altiusinvestech.com. For educational purposes only; not investment advice. Altius Investech is not SEBI-registered; investors should do their own due diligence.)