frequently asked questions
Find answers to common questions that you may have in your mind
Unlisted equities are shares of companies that are not listed on any stock exchange. These companies are privately held and may offer there shares to select individuals or investors through platforms like InCred Premier. Investing in unlisted equities provides an opportunity to participate in the growth of promising private companies.
Valuation of unlisted equities is typically determined through various methods, such as discounted cash flow (DCF) analysis, comparable company analysis, and other industry-specific valuation techniques. The valuation may take into account factors like the company's financial performance, growth prospects, competitive positioning, and industry trends.
Investing in unlisted equities carries certain risks, including limited liquidity compared to publicly traded stocks, higher volatility, lack of regulatory oversight, and potential challenges in obtaining accurate information about the company. important to carefully evaluate the risks and rewards before making any investment decisions.
Investors should be aware of the tax implications related to investing in unlisted equities. Depending on the holding period and the profit realized upon selling the shares, capital gains tax may apply. It is advisable to consult with a tax advisor to understand the specific tax obligations and implications for unlisted equity investments in India.
Unlisted shares may offer high growth potential, especially in companies expected to list publicly soon. They can be an attractive investment option for those willing to take higher risks.
The price is influenced by company fundamentals, demand and supply, and the company's performance, often through direct negotiations.
Yes, though liquidity is low. Shares can be sold through private deals or to investors who specialize in unlisted shares.
After a company goes public through an IPO, its shares are listed on the stock exchange, and their liquidity improves. Investors can sell their shares at market prices.
Taxes depend on the holding period. Short-term capital gains are taxed higher than long-term gains, as per the income tax laws in India.
Unlisted shares are not traded on exchanges, making them less liquid, while listed shares are easily traded and have better transparency.
No, liquidity is a major issue, and selling these shares can take time and effort due to limited market participants.
Evaluate the company's business model, financial health, management team, and growth stage before making an investment.
Look for metrics like revenue growth, profitability, and sustainability of cash flow. Platforms like the MCA database can be useful.
Valuation depends on company metrics, market trends, and growth potential. Avoid overpaying for hyped-up shares.