We have a simple goal to help unlock the intrinsic value of both the ENTERPRENEUR and the ENTERPRISE.
We create harmony between the 3 capitals: Human, Social and Financial. We have evolved the fundamental focused approach of ‘research and recommend’ to help create, nurture and build great companies. Investing strategically with such companies ahead of time, can create value not only for the entrepreneur but for the enterprises and its shareholders as well.
What are Unlisted Shares?
The shares which are not listed on the formal stock exchanges (BSE/NSE) are referred to as unlisted shares/ stocks. For instance, API has unlisted shares, OLA has it as well. Unlisted shares are riskier than listed shares as their liquidity is limited since it is not listed. They are less transparent but with more stable valuations. So, if you can pick an unlisted share that has all the potential to get listed and the company has growth potential, your returns can be amplified enormously from that share.
Who sells Unlisted Equity Shares?
Existing shareholders of the unlisted company can sell unlisted equity shares. These can include Employees, Ex-employees, CEO, Promoters, Private Equity investors, and more.
When can we liquidate after IPO?
There is a lock-in period for 6 months once the company hits IPO (subject to regulations) . It is regulated by SEBI.
Taxation Details
Short-Term Capital Gain taxes to be paid on Unlisted Shares ?
If you sell your shares within 2 years, then you will have to pay Short-term Capital gain on Unlisted Shares. Short-term Capital Gain is added in your Income. So, as per individual tax slab you need to pay Capital.
Long-Term Capital Gain taxes to be paid on Unlisted Shares ?
If you sell your shares after 2 years, then you will have to pay Long-term Capital Gain on Unlisted Shares LTCG is 20% with indexation benefits.
Applicability of Taxes on Unlisted Shares once it is listed ?
Taxes will remain the same irrespective of listing of shares, if bought in unlisted market. Actually, to be eligible for taxes as per listed market, one has to pay STT on buying and selling of shares. But, if you buy in unlisted and sell in listed market, one pay STT only on selling so, taxes of listed market will not be applicable.
