VMPL
New Delhi [India], September 6: Unlisted shares have found their spotlight lately, thanks to companies like NSE, Tata Capital, OYO, BOAT & more making waves before going public. If you've recently invested, congratulations! You now own a part of a company that isn't available to the general public yet.
But once you've bought these shares, what happens next? Unlike listed stocks where your price and exit options are visible instantly on the stock exchange, unlisted shares require a different approach to tracking and eventually exiting.
Managing Unlisted Shares: A Step-By-Step Market Guide to Track Unlisted Share investments Before and After an IPO
Consider Tata Capital, one of India's largest NBFCs, has announced its much-awaited IPO, targeting a valuation of nearly $11 billion. The issue size is pegged at around USD 2 billion (₹17,200 crore), with a likely listing by end-September 2025. For investors holding or planning to buy its unlisted shares, here's how the investment journey unfolds:
1. Buying Unlisted Shares : Buying unlisted shares of a company like Tata Capital is a straightforward process. Once purchased through intermediaries, the shares are directly credited to your Demat account (NSDL/CDSL) -- exactly like listed equities. This removes the need for additional paperwork at the acquisition stage.
2. Tracking Holdings and Prices : Investors could view their holdings anytime through NSDL's IDeAS platform, CDSL's myEasi service, or even their broker's app.
For tracking share prices, Wealth Wisdom India Pvt Ltd (WWIPL.com) provides updates on unlisted market including latest share price, market capitalization, real time share price performance, and historical price chart. For instance, as of September 1, 2025, Tata Capital's unlisted shares were traded at ₹790 per share. And compared to WWIPL's Primex 40 Index, returns stood at 97.5% (Tata Capital) vs. 89.4% (Primex 40 Index) -- giving a clear perspective on relative performance.
3. Company Updates and Information : Often some Unlisted Companies financials are not uploaded on companies websites or not published across business news every quarter. Investors often had to rely on sources such as company annual reports, official announcements, or WWIPL.com that made such information available along with their offering to provide On-Demand Company Analysis.
4. IPO Listing and Lock-In: When the company goes public, unlisted shares automatically convert into listed shares in Demat accounts. SEBI mandates a lock-in period to prevent immediate selling:
* Promoters: up to 18 months
* Pre-IPO investors or HNIs: around 6 months
* Employees via ESOPs: 6 months
* Retail IPO allottees: no lock-in
For example, as of September 1, 2025, Tata Capital, the NBFC, announced a USD 2 billion (₹17,200 crore) IPO, scheduled to launch in the week starting September 22, with a stock market debut expected by September 30. Here too, different investor categories will be subject to SEBI's lock-in period post listing.
Mandatory lock-ins promote market stability during the initial trading period. While the IPO listing day marks the official price discovery, where the secondary market sets the definitive market price, potentially differing from the unlisted market valuation.
5. Exit and Liquidity Window : After the lock-in expires, investors can freely trade their shares on exchanges. This transition marks the conversion of previously illiquid unlisted holdings into tradable stock, allowing investors to capitalize on early entry into the company.
Selling Unlisted Shares
Selling unlisted shares is layered as compared to buying them. While acquiring unlisted shares has become easier, exiting your investment requires careful consideration, especially regarding tax implications:
For Unlisted Shares:
* Long-Term Capital Gains (LTCG): If you hold shares for more than 24 months, gains are taxed at 12.5% without indexation benefits.
* Short-Term Capital Gains (STCG): If shares are held for 24 months or less, gains are added to your annual income and taxed according to your applicable income tax slab.
For Listed Shares (Post-IPO):
* Long-Term Capital Gains (LTCG): Shares held for more than 12 months are subject to 12.5% tax on gains above ₹1 lakh, with no indexation.
* Short-Term Capital Gains (STCG): Shares sold within 12 months are taxed at 20%.
Hence, consulting a Tax Consultant or Chartered Accountant would be beneficial for a good decision before selling or buying the unlisted shares for better returns. As staying informed and working with the right advisors can make your unlisted share journey smoother, from the day you buy, until the day you finally exit.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by VMPL. ANI will not be responsible in any way for the content of the same)
