Who's Investing in Unlisted Shares--and Why the Retail Crowd is Catching Up

PNN
New Delhi [India], September 30: Investing in unlisted companies--essentially buying shares before they are listed on the stock exchange--is gaining significant traction in India. The appeal is clear: investors can potentially earn in two ways, first, by riding valuation gains before listing, and second, by pocketing a listing premium when the company finally goes public.
The Pre-IPO Buzz
With India's IPO market buzzing, unlisted shares have seen a surge in demand. Big names like NCDEX have attracted significant investor attention in the private market recently.
Share Performance & Market Sentiment
- Its Unlisted shares surged 150% in a year, trading around Rs 485, up 40% in the past month.
- Rally driven by plans to launch equity and equity derivatives products, and Sebi's in-principle approvalin July 2025.
Investor Interest & Fundraising
- Fresh investments from prominent investors, including Radhakishan Damani, Ramesh Damani, Madhusudhan Kela, Sunil Singhania, and others.
- Raised Rs 770 crore through the fundraising program.
Financial Performance
- FY25 revenue: Rs 46 crore (FY24: Rs 45 crore, 1% growth).
- FY25 net profit: Rs 3.32 crore (FY24: Rs 2.49 crore, 33% growth).
Momentum Driver
- Unlisted shares of the National Commodity & Derivatives Exchange (NCDEX) have experienced a notable appreciation in both demand and pricing within the grey market. The momentum is being driven by heightened investor sentiment surrounding the long-awaited initial public offering (IPO) of the National Stock Exchange (NSE).
Who's Buying and Why?
Traditionally, high-net-worth individuals (HNIs) and ultra-HNIs dominated the unlisted Shares, also known as the Private market. They are increasingly investing in these stocks and even global opportunities, fueled by better access to information, wealth from ESOPs, and specialized advisory services--especially in Tier-II and Tier-III cities. Over the past year, much of the unlisted offerings came from institutional sellers, meeting the growing appetite of retail investors for capital-market plays like NSDL.
Retail interest has surged recently.
1. After share transfers were streamlined to a one-day process in April 2025, the number of retail investors in NSDL alone jumped to an estimated 9,000-10,000.
2. The National Stock Exchange (NSE) also saw a record rise in retail participation: 1.46 lakh individuals now hold stakes under ₹2 lakh, the highest for any pre-IPO Indian company. The total number of NSE shareholders climbed to over 1.59 lakh in the June quarter of FY26, nearly quadrupling from 39,201 in the previous quarter.
Alongside retail investors, domestic and foreign institutional players are also showing interest, even before IPO dates are finalized.
Why Retail Investors Are Now Venturing Into Unlisted Shares?
India has witnessed one of its busiest IPO markets this year, raising around $2.8 billion in Q1 despite global headwinds. Amid this boom, the unlisted market has been quietly expanding. Traditionally dominated by wealthy investors, unlisted shares are now attracting retail investors.
Vivekanand, an individual investor with over 20 years of experience in unlisted shares, notes, "Value-based companies drive the decision to invest in unlisted shares, and retail investors' interest is growing with access to platforms for unlisted investments."
On evaluating and managing risks in unlisted shares compared to listed stocks, he adds, "Experience plays an important role in this. Proper research is crucial. Factors like the company, sector, and other variables all come together. Regulation is important, and it should guide investments. People should invest based on their knowledge, not on tips from others."
Vivekanand further emphasizes that a regulated, common platform could significantly boost investor participation. "If SEBI introduces changes for such platforms, it will be beneficial. A regulated platform will define future participation in unlisted markets," he says.
Ashwin Kumar Bhat, a Pharma consultant from Mumbai who has been investing in unlisted shares through WWIPL.com for the past nine years, explains his approach, "The ratio of change in key metrics can be an important factor when investing in unlisted shares." He primarily looks at company earnings and overall performance before investing. Ashwin mentions that he is currently interested in two unlisted shares, NSE and Parag ParikhFinancial Advisory Services, and notes that future investor participation will largely depend on promoters who bring IPOs to the unlisted market, aiming to raise funds.
Ashok Jain, who has been investing in unlisted shares for over 15 years, shares his perspective, "I have hope in companies like OYO, Metropolitan Stock Exchange of India Limited (MSEI), and API Holdings. Even if they seem a bit risky, they could offer potential returns." He adds, "Early-stage potential drives my decision to invest in unlisted shares. Retail interest is growing due to attractive pre-IPO opportunities. I also evaluate the quality and discipline of unlisted companies before investing."
Jain concludes, "Every year, investor interest in unlisted shares grows, and in the coming months, we can expect even more participation due to the expected IPO of NSE."
With India's IPO market booming, ₹4.3 trillion raised in FY25 and another ₹1.4 trillion expected soon, the unlisted market is also growing, and platforms like WWIPL.com are already in the space, making trading transparent, with its website and apps designed to help investors navigate this exciting space wisely.
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