FAQ
Frequently Asked Questions
Everything that you need to know about unlisted shares , Pre – IPO investing and
our services at VMB Capital.
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Browse through our most commonly asked questions below.
What are Unlisted Shares ?
Unlisted shares are shares of a company that are not listed or traded on any official stock exchange such as NSE or BSE. These shares are bought and sold in the over-the-counter market (meaning: privately, between buyers and sellers directly). Investing in unlisted shares — also known as Pre-IPO investing — gives you the opportunity to become a shareholder in a promising company before it goes public, often at a significantly lower price than its eventual IPO valuation.
Can Unlisted Shares be Sold ?
Yes, unlisted shares can be sold, but not through a traditional stock exchange. They are transferred privately between a buyer and seller through an intermediary (meaning: a middleman or broker who facilitates the transaction). The process involves a formal transfer of shares through a Demat account. However, it is important to note that unlisted shares are generally less liquid (meaning: not as easily or quickly convertible to cash) compared to listed shares, and finding the right buyer may take more time and effort.
Are unlisted shares a good option for first-time investors?
Unlisted shares can be a rewarding (meaning: highly beneficial) investment option for beginners, provided they approach it with proper guidance and realistic expectations. Since these shares are not traded on a stock exchange, they require a longer investment horizon and a higher risk tolerance. At VMB Capital, we hand-hold first-time investors through every step — ensuring they understand the risks and opportunities before making any decision.
How are unlisted shares priced in India?
Unlike listed shares where prices are determined by the stock market in real time, unlisted shares are priced based on factors such as the company’s financials, growth potential, recent funding rounds, and overall demand among investors. At VMB Capital, we ensure complete transparency (meaning: openness and clarity) in pricing — so you always know exactly what you are paying for and why.
Which unlisted shares are worth investing in right now?
The best unlisted shares to invest in depend entirely on your financial goals, risk appetite, and investment horizon. Some of the most sought-after (meaning: highly in demand) unlisted shares in India currently include companies in the fintech, infrastructure, and consumer sectors that are anticipated (meaning: expected) to go public in the near future. Our team at VMB Capital regularly curates a list of high-potential opportunities — get in touch with us for the latest recommendations.
What are the risks involved in investing in unlisted shares?
Every investment carries risk, and unlisted shares are no different. The key risks include lower liquidity (meaning: difficulty in quickly converting shares to cash), limited publicly available financial information, longer holding periods, and uncertainty around IPO timelines. However, these risks can be significantly mitigated (meaning: reduced and managed) by investing through a trusted and experienced intermediary like VMB Capital, who conducts thorough research before recommending any opportunity.
What is an IPO and how does Pre-IPO investing work?
An IPO (Initial Public Offering) is the process through which a private company offers its shares to the general public for the first time by getting listed on a stock exchange like NSE or BSE. Pre-IPO investing means purchasing shares of that company before it goes public — at an early stage when the price is significantly lower. This strategy allows investors to capitalize (meaning: take financial advantage) on the company’s growth journey from its early stages, potentially generating substantial returns once the IPO happens and the shares get listed.
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