Risks of Buying Unlisted Shares and How to Avoid Them
Unlisted shares or equity in companies not listed on stock markets can offer unique possibilities. Early entry into high-growth businesses, for example. Investors should be aware that these investments are not without risk. The following is a list that includes the most common risks associated with unlisted stock, along with practical strategies to reduce them and make informed investment decisions.
| Risks | How to Avoid | How Altius Investech Helps |
|---|---|---|
| LACK OF LIQUIDITY | Invest only funds you can lock away for a while. Research exit options like private sales or buyback offers. | Altius Investech is a platform that offers a safe and secure way to buy unlisted shares as well as sell them, enhancing liquidity. This allows for possible exits in less liquid markets. |
| LIMITED TRANSPARENCY | Investors should do their due diligence to effectively manage risk. Investors are encouraged to review the company’s financials, evaluate its management credibility, and assess long-term performance. | Altius Investech supports this process with comprehensive research tools such as detailed blogs and company reviews. These resources fill in the information gaps that are often associated with unlisted stock, allowing investors to make informed and confident decisions despite an opaque investment environment. |
| VALUATION RISK | It is important to do thorough research when determining a company’s value. You should consult a professional to help you determine the value of the company. This includes several important factors like: financial performance, growth trajectory, comparisons with other companies in the same industry, and macroeconomic conditions. | Altius Investech is a company with over 25 years of experience in the industry and a team specializing in unlisted equity valuation. They are well-versed in the dynamics of the markets, the sector-specific trends, and how to give investors data-backed assessments that reflect the true value of a company. |
| BUSINESS RISK | To make an informed investment decision, people need to understand the landscape of the industry. Another crucial factor to keep in mind is the evaluation of qualitative factors like:business plan of the company, the unique competitive advantages, and the operational scalability. | Altius Investech provides end-to-end support to further protect investor interests. This is backed up by strong legal frameworks and compliance. Their legal excellence, which includes navigating regulatory procedures and verifying company credentials, ensures that each transaction is conducted with maximum transparency while minimizing risk. This builds long-term confidence and trust among investors in the unlisted market. |
Important Note– Please note that the lock-in period for selling unlisted shares is six months after listing. Hence you cannot sell an unlisted share that you bought in Pre-IPO for six months after its listing.
For any query/ personal assistance feel free to reach out at support@Altiusinvestech.com or call us at +91-8240614850.
To know more about Unlisted Company. Contact Us.
You can also check out the list of Best 5 Unlisted Shares to Buy in India.
To buy unlisted shares of any company. Click here – https://altiusinvestech.com/companymain