Unlisted Shares

 

What are Unlisted Shares?

Most of the people are unaware about the true meaning of Unlisted Shares.

• Unlisted shares, in simple terms are those shares which are not traded on NSE and BSE
• Unlisted Share are traded via a broker-dealer network.

 

Unlisted Companies that can be traded: A Picture Presentation

 

 

Public Companies that are not traded on BSE & NSE:

 

They are shares of companies that have never been traded on a stock exchange and that are available to the public.

 

 Subsidiaries of well-known publicly traded companies, such as Reliance Retail, HDFC Securities, Chennai Super Kings Ltd as well as Tata Technologies

Start-ups & Unicorns such as Five Star Business Finance ltd, Cochin International Airport.

 

Key Benefits of investing in Companies not traded on BSE & NSE

• Access to new-age companies that are high on innovation.
• Unlisted Stocks provide an opportunity to invest in a firm that is still in its early stages of growth and yield high returns.
• Unlisted equity shares are a distinct asset class, and as a result, they provide some risk diversification for investors who invest primarily in listed equity markets.

 

 

Delisted Companies

 

These are those company shares that were once listed on the stock exchanges but got delisted due to various reasons either via voluntary delisting process or compulsory delisting process.

 

Key Benefits of investing in Delisted Shares:

One can get better exit opportunities in Unlisted Markets. Hexaware Technologies Ltd, and Otis Elevator Company (India) ltd are good examples of Delisted Shares.

 Hexaware Technologies Limited got delisted at 480/- and now trades at 630-700 levels in Unlisted Market.

 Otis Elevator Company India Limited got delisted at 320/- and now trades at 4100-4500 per share in the Unlisted Market.        

Companies that have voluntary delisted may relist within three years in accordance with the new Sebi Guidelines published. The previous period was five years.

Shareholders can create wealth from companies that were previously delisted but are now back on the market (relisted). Mideast Integrated Steel Limited, for example.

 

 

Regional Listed Companies

These are shares that aren't traded on the NSE or BSE, but rather on stock exchanges such as the Metropolitan Stock Exchange of India or the Calcutta Stock Exchange, where trading is either non-existent or very infrequent.

 

Examples include – Premier Cryogenics ltd, Mohindra Fasteners Ltd, India Carbon ltd.  Some of the market leaders like Dalmia Refractories ltd, Mohan Meakin Ltd etc.

 

Key Benefits of investing in Regionally Listed Shares:

 

Regionally listed companies can list directly on BSE or NSE without going through IPO process  

For instance, Lux Industries Ltd, which significantly increased shareholders' wealth

Also, since these companies do not need to go through the IPO process, there will be no 6-month lock-in period for shareholders.

 

DRHP filed – Pre-IPO companies

 

These are the companies that has filed DRHP and will get listed in NSE or BSE after the approval of SEBI.

 

Examples include – One Mobikwik Systems Ltd, Tamilnad Mercantile Bank Ltd, Le Travenues Technology Ltd (ixigo), etc

 

Key Benefits of investing in DRHP filed companies:

• You can get a pre access to those shares in the Unlisted Markets that are difficult to be allotted in an IPO, as there is no certainty that you will be allotted shares in an IPO.
• As per the new SEBI rule, the lock-in period in Pre-IPO shares held by individuals is reduced to 6 months from 1 year.

 

Information on companies that have completed an Initial Public Offering (IPO):

Company Name	Unlisted Market Share Price	IPO Price Band	Listing Price	52 Week High
Nazara Technologies Limited	834.00	1101.00	1990.00	3,354.40
Catholic Syrian Bank Limited	179.00	195.00	307.00	374.00
Barbeque Nation Hospitality Limited	575.00	500.00	489.85	1,949.70
Avenue Supermarts Limited	438.00	299.00	642.00	5,899.90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rarely Traded or Suspended Companies

 

There are some companies that are rarely traded or suspended on NSE or BSE due to a combination of reasons, including circuit filters mechanism

 

Among the best examples are –

 

Elcid Investments Ltd., a BSE listed company, which is a co-promoter of Asian Paints with a significant Net Asset Value, which is locked at Rs 17 per share on Bombay Stock Exchange, while in the unlisted market, it is traded between Rs 1,50,000 and Rs 2,00,000.

It is possible for suspended companies to relist, providing opportunity for shareholders who bought stocks off-market to improve their wealth.

A good example is Coffee Day Enterprises Ltd- While it was suspended from BSE, it was traded in Unlisted Market, but it got relisted and has created wealth for shareholders.

 

 

Now, when we say traded over the counter, many people would wonder, from where and how to buy unlisted shares?

 

Let us understand this process step by step

Once, you decide to trade in unlisted shares you can visit our website www.3Adeal.com. 3A Deal is the official website to buy unlisted shares from us.

 

You will get all the details about the companies: background, financial snapshot, info about the directors of the company. After selecting the shares you want to buy, click on buy now

 

Step 1: Sign in/ register if you are a new customer

Few basic details you need to provide like – name, contact details and create a password.

 

Step 2: Billing and Shipping Address

You need to provide your city, state of residence.

 

Step 3: Demat Details and PAN Details

Unlisted shares are transferred in your existing demat account, one doesn’t need a separate demat for buying unlisted shares. (You can buy it from the same account in which you have your “listed shares”).

Here you need to provide your DP ID, client ID details, PAN Number, Date of Birth and PAN Card name.

 

Step 4: Billing Options

This is the final step where you have to choose your paying method from the options available.

 

After verification of all the documents, shares are transferred directly to your demat account. We provide SAME DAY DELIVERY – Transfer of shares to your account on the same day of receipt of funds, a confirmation note is also provided afterwards.