If you examine the buying patterns in the unlisted market, you'll see that they are motivated by the IPO market's enthusiasm. Investors will increasingly turn to the pre-IPO market if IPOs continue to increase in number, as they did in 2021. However, in reality, the opposite ought to occur. The majority of investors flood the market when it is euphoric, which causes losses in the unlisted market. The unlisted share market was booming in 2021 as a result of a huge number of IPOs, which caused the valuation of all unlisted shares to skyrocket. So, all investors who had entered at higher levels during 2021 today has negative portfolios.
Flashback three years to a time (Year 2019) when the unlisted market was less euphoric. All of the scripts were reasonably priced. There weren't many IPOs coming to the market. There weren't many investors seeking for deals. It was a good opportunity to invest in the unlisted market but nobody was interested in the unlisted market at that point. The investors in the unlisted market who made investments at that time has received multi-bagger returns in many scripts. Some of these scripts are mentioned below.
- CSK Unlisted Share from 20 to 240 in last 3 years.
- Care Health Unlisted Share from 35 to 250 in last 4 years.
- National Stock Exchange Unlisted Share from 800 to 4000 in last 3 years.
- Tata Tech Unlisted Share from 800 to 6000 in last 3-4 years.
- Reliance Retail Unlisted Share from 500 to 3500 in last 3-4 years.
- Studds Unlisted Share from 100 to 2000 in last 5 years.
- Elofic Unlisted Share Industries from 100 to 3000 in last 5 years.
- Lava Unlisted Share from 200 to 1000 in last 2 years.
- Sterlite Power Unlisted Share from 100 to 1600 in last 2 years.
There are other additional scripts in the unlisted market that have produced positive results.
The following is a list of the main factors that contributed to the above scripts' success in the unlisted market.
- All of these unlisted shares were offered at the right price.
- All of these unlisted equities have shown strong fundamental performance.
- Three years ago, there was less demand for all of these shares.
Some unlisted shares, though, haven't done well during the past three to four years.
- MSEI: Over the past four years, the price has fluctuated between Rs. 1 to Rs. 1.5. The company's business has not increased during the past four years. This is the cause of the underperformance of this unlisted stock.
- ICEX: Over the past four years, the price per share has decreased from Rs.12 to Rs.5. Reasons include a lack of revenue growth and the recent SEBI termination of ICEX's licence due to the exchange's net worth falling below 100 Cr.
- Bharat Hotel: The price per share of this unlisted company decreased from Rs. 440 in 2018–19 to Rs. 150 on the unlisted market. The cause was poor financial performance in the last 2 years due to covid-19.
- HDB Financials: The price per share of this unlisted stock decreased from Rs. 1100 in 2018–19 to Rs. 640 in the unlisted market. The reason was poor financial performance in the last 2 years due to covid-19. Rising NPAs and stagnant loan book growth were the primary causes of the unlisted share price to decline. But now that the corporation has returned to its pre-covid level, it will do well over the next 2-3 years.
Is this the correct time to invest?
There has been a continuous selling in the unlisted market over the last 4 to 6 months. There are very few buyers available in the unlisted market. Everyone is only interested in selling. As a result, the prices of many scripts have dropped. At the moment, there is no euphoria for unlisted space. There will be no IPOs in the primary market. All of these conditions are creating a Zone which was there in the unlisted market in the year 2019. So, select good scripts and slowly start accumulating the fundamentally good unlisted shares from the market.
If you face any issues in selecting fundamentally good scripts, then request to visit the below URL. Registers your account and you will get a dashboard in which we regularly update the top 10-15 scripts available in the unlisted market.
https://crm.unlistedzone.com/customer/login
Conclusions:
- The average investor always invests when the unlisted market is in euphoria. Because of this, people are always end up paying a premium for unlisted stocks. If you acquire unlisted shares at a high price, your odds of profiting are slim. So, invest when nobody is buying.
- Only put your money into companies that have a solid foundation. It's common for people to acquire penny stocks believing that they'll make a fortune, but this isn't the case. Penny stocks are a near-impossible investment to profit from. So, if you want to make money in the long run, stick to the fundamentally strong unlisted companies.