Skip to main content

PRE-IPO buying in Equity market

 Hi everyone,



    We saw a good round of IPOs last week in the Indian Equity market. I know about my luck in IPO allotment after following IPO applications for more than a few years. so I decided to take other routes than applying for an IPO. Many times I have heard that we can buy equity shares before IPO. YES, it is possible I haven't shared this information earlier because I was not aware entire process of buying or selling the shares PRE-IPO equity I was waiting in reality to understand how this goes. 


 There might be more than one platform from which we can buy unlisted equity shares in India but I used one among them to buy unlisted shares of Tata Technology will share those details in the later part of this post. I got to know very late but at the right time.


I bought Tat Technologies from one of the platforms where we can buy unlisted shares. as I know my luck of getting shares allotted in the IPO lottery.


process:

--> Create an account of the platform or website that is selling unlisted shares.

--> Add the bank account and demat account-related details to the platform.

--> Added money to the wallet like how we add funds in our trading broker account.

--> Place a buy order tor the shares, like we place a buy or order in our trading account.

Panic mode started (for me at least;-P ) once I had placed this order as this is the first time I am following this process and it is quite big money .

--> It took two to four days to get the un-listed shares into our platform account.

--> I took a deep breath and my panic reduced a bit now as we got shares into account.

--> Now the next headache about booking the profits once it is listed.

--> After this step we didn't have a choice other than waiting for equity to get listed, as I bought the shares of Tata Tech by April and waited(almost 7 months) for it to get listed in the public market.

--> Finally the day for Tata Tech listing, as this IPO had 69 times of subscriptions I guessed at least I would get a listing gain.

A few days before  listing of Tata Tech:

I have got a message from CDSL that my shares of Tata Tech have been moving to my demat account.

Twist on the listing day:

I got an update e-mail and message in the broker account saying that I can't sell the shares which I bought from the pre-IPO market as per SEBI we have 6 month lock-in period.

--> It was my good that it listed with a huge gain during the listing. (not sure I need to laugh or cry)

--> After listing I realized that I had paid 10K in the platform where I bought a PRE-IPO market, so I realized that I was at a loss.

--> I bought one share of Tata Tech for 800+ rs but the IPO price was set as 500 so I have made up my mind for 300+rs of loss per share.

--> After having a conversation with my friends who have also bought with me I got the clarity that I paid a higher price than the market price, I got a clarity on this part.

--> I am a long-term investor/holder of any funds, so have to wait and see how it pans out after 6 months.

Important points:

--> 6 months of lock-in from the listing or IPO start date.

--> Nothing is final unless we get it listed and not sure when it is going to get listed.

--> till it gets listed we will get dividends I know this part I have got the dividends for Tata Tech, if I come across any split or bonus I will update this blog.

--> If we want to book profit earlier to the listing we can do that too but for that we need to download the request letter from the broker site, fill information in it and courier it to the broker's head office. 

I prefer holding it to the listing.


Finnaly:


I got the unlisted shares from this platform:

https://portal.precize.in/referral/XXS7Q1

The final decision is in our hands again. Take the risk according to the depth of our pocket and risk profile.

Cheers and bye for now :)



Comments

Post a Comment

Popular posts from this blog

Diwali pick

 Hi Everyone,     Happy Diwali to everyone, I hope everyone of us will be having a happy and safe Diwali with friends and with their family. Whenever I open an investment or equity-related application or discussion group on my mobile, I see everybody turning out as a market analyst and suggesting or sharing their stock selection for Muhurat trading today. which happens between 6:00PM to 7:15 PM as this is an auspicious time for the day. I was thinking why I shouldn't share the ones which I have selected for investment with the detailed analysis.     Usually, I watch the ocean market at bay for 99% of the time. sometimes I am involved in investing based on my personal analysis success rate in the past based only on my fundamental analysis. I have opted for the following shares after my fundamental analysis. 1. Fortis health care. 2. Umang dairies  1. Fortis Health care: There are reasons for opting/selecting this one. I always relied on this flag pole patter...
Post a Comment
Read more

Thank you / follow up/ update/ 2023 Diwali picks

 Hi Everyone, I hope we benefited from last year's Diwali Pick. Based on the previous year's investment returns on Diwali picks, I can take care of the upcoming Diwali celebration.  Let us see the returns with sample data: We considered these two at the price of  1. Fortis Health Care @ 360 2. Umang Dairy @70. I hope we have achieved the below-mentioned targets from our 1. Umang Diaries 70 to 150(but high it made high of 165rs) which is more than 110% of return on investment within a year. 10K of investment would yield 21,326 after brokerage our charges might vary based on brokerage but the return on invested capital would be the same for all of us. 2. Fortis Healthcare 365 to 518(even now it is trading at 600+) 10K of investment would yield 14,105 after brokerage our charges might vary based on brokerage but the return on invested capital would be the same for all of us. In simple terms our investment of 20K would have grown up to 35,431 this excludes other corporate act...
Post a Comment
Read more

Investment secret

 Hey Folks, As I have mentioned in the previous blog, I had blogs in the draft so will be sharing them one by one when I get time to work on these drafts. We will see one way to make money through stocks, I have to agree that this is not my own method, I understood this way by following a fellow lady trader. Ways to make money: 1. Invest in business by having a long-term view. 2. Invest in stocks for other activities to turn them in our favour based on the following events --> Stock Split. --> Bonus Stocks --> Dividend investment. Stock Split: This event can happen for any of the following events, to make prices-price affordable for more people, so many can afford it and that in turn bring some money, and provide increased liquidity for a company. This event will not affect fundamentals mostly. This will provide a good chance for an investor to invest money in good stocks or businesses. I can remember a few recent time splits that happened in the Indian market into compani...
Post a Comment
Read more