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Swiggy will raise a total of Rs. through its proposed IPO in November. Will collect. There is a plan to raise Rs 10,000 crore.
Even before the IPO, how many high net worth investors are betting on investing in the shares of this company. First of all Madhuri Dixit paid Rs. Rs 345 of the company. It was told that shares worth Rs 3 crore were purchased. After this, a listed company named Modern Insulator paid Rs. The news of buying 1.38 lakh shares of Swiggy at the price of Rs 360 was flashed. After which it is said that celebrities like Rahul Dravid, Amitabh Bachchan, Karan Johar have bought shares of this company. In this way, the attractiveness of this share increased so much that in July, Swiggy shares were sold at Rs 100. Which has now increased to Rs 340. It has reached 490. That means it has increased by 40 percent even before the IPO. This reflects the growing popularity of buying shares under pre-IPO placement.
Various IPOs including some big ticket issues are going to come in the domestic primary market in the coming times. Retail investors are very excited about the IPOs of some big companies like NSE, Swiggy and Hyundai. However, these investors are also willing to invest in the existing unlisted shares of these companies that have come up with IPOs. However, since retail investors are not as familiar with the market of unlisted shares as they are with the market of listed shares, retail investors are confused about whether to invest in it or not and if so, how and at what price. But. This is also because the unlisted securities market is not as transparent as the listed market and many of its equations are difficult to understand. In such a situation, it would be interesting to know how shares of companies are sold in the unlisted market and on the basis of which factors the prices of shares of such companies are determined.
Companies that are not listed on the stock exchange are owned by promoters, venture capital funds or private equity funds. Unlisted companies are generally operating in emerging sectors such as technology. However, experts believe that due to lack of information about the business of such companies and their dominance in their sector etc., unlisted shares of these companies are traded at much lower prices than the prices of shares of similar listed companies. Doing business. Currently unlisted companies include National Stock Exchange (NSE), Swiggy, Tata Capital, Oyo Hotels, Vaari Energies, HDB Financial Services, Chennai Super Kings, Urban Company, etc.
Any investor having a demat account can easily invest in listed shares. However, buying or selling unlisted shares is not that easy. Such shares are sold through brokerage or over the counter (OTC) market. If retail investors wish to purchase such unlisted shares, they will have to purchase such shares through private placement or off-market transactions. Some online platforms provide the facility to buy and sell unlisted securities. Additionally, some companies offer Employee Stock Options (e-SOP) to their employees. In this way, investors can also buy shares of unlisted companies from employees who have received shares.
Although according to experts, shares of unlisted companies are available for purchase, but in reality the most complex question is at what price the shares of such companies should be purchased. Determining this becomes a difficult task, especially due to lack of information. Unlike listed companies, unlisted companies are not required to disclose their financial results. Therefore, it is difficult for investors to determine the true value of shares of an unlisted company in the absence of such results. Another important point is that shares of unlisted companies are less liquid than those of listed companies. That is, no investor can sell the shares of an unlisted company immediately when the stock market is open like a listed company, because the share deal can be done only when someone is ready to buy.
The size of the company's business, business growth potential and risks associated with the company also play a role in determining the share price of unlisted companies. If the business size of an unlisted company is relatively small and the business has not been started for a long time, the risk in investing in such companies is higher. If the risk is high then the share price decreases. However, if a company records extraordinary growth in its business even in a short period of time, the attractiveness of its shares increases and the price increases. Furthermore, as is currently seen in some start-ups in India, if a venture capital fund has made a large investment in a company, there is a risk associated with the company's business, even if it is because of the support of this fund. The value of his shares increases.
However, the biggest challenge of investing in unlisted companies is the lack of liquidity. As soon as you decide to sell shares of a listed company, these shares are sold online in the stock market at consistently low prices. On the other hand, if shares of an unlisted company are to be sold, it is possible that customers may not be found immediately and sometimes the sale of such shares may take several weeks or even months. Another thing to consider is that companies that are not listed do not have complete transparency about their business. Therefore, if the company has any hidden liabilities or debts, it is possible that the investor will come to know about it later. Apart from this, it is also possible that some important information is hidden by the promoters of such companies and due to this the investor becomes a victim of fraud. If you want to sell shares of an unlisted company, if such companies launch IPO then it is a good option to sell. Otherwise the private investor does not know when the sale will take place. There is uncertainty in both these options. Another most important thing is that the regulatory provisions do not apply to unlisted companies. Therefore the risk of investing in such companies increases. At the same time, investing in the shares of unlisted companies in the initial phase increases the possibility of getting huge profits, because if the business of the company will be good in future, then its price will gradually increase and when such companies get listed or this company gets listed. Investors who buy shares of this company acquired by another big company in the initial phase get manifold benefits of investment.
