The demand for stocks that are not listed of a select group IPO prospective companies
PharmEasy, Bikaji Foods and Tata Technologies are among the companies with massive demand for their stock even though they aren’t listed. According to dealers, the shares are being traded or sold at a minimum of 32 percent more than their previous transactions.
IIFL Securities has sold more than Rs 100 crore in PharmEasy Equity shares to wealthy investors for 103 rupees per share. The shares were traded at 78 cents prior to the sale, but promoters had not released many shares. PharmEasy is estimated at $7.5 billion, based on the scientific method, according to one of the dealers.
” This year’s specific blockbuster IPOs have sparked more interest in unlisted shares in which investors are hoping to make the first windfall profits,” said Tushar Bopche, cofounder of BrainStation India a startup incubator that is active in the financial market. ” In the past few weeks, there’s been a few block transactions that involved companies selling shares to wealthy people for a significant price.”
Promoters of businesses generally transfer shares to asset management firms which then sell them to book profits. In other instances, business owners may issue shares to brokerage firms in smaller amounts.
Tata Technologies shares have more than doubled over the last year. The shares are now trading between Rs 5,200 to Rs 3,300.
” There has been incredible growth for the business,” said Rahul Thalia, Director of Sarffin Financial Advisors. “They have posted very good quarterly results and the outlook for the future is promising. Large institutional buyers are on the market that is not listed and the price is already priced into.”
European aerospace giant Airbus has chosen the global design and development service business Tata Technologies as a strategic supplier just a few weeks ago. This has increased the appeal of Tata Technologies and is expected to be listed in the near future.
However, investors must be wary of several aspects before purchasing shares that are not listed. There are several factors to consider. Right of First Refusal (RoFR) and non-RoFR are two of the. Investors should transform RoFR into non-RoFR via an official procedure in consultation with the secretary of the company. If this is not done, an investor will face it difficult to get rid of the investment.
Bikaji shares are being offered for sale at Rs 450 per share. A local brokerage, who could have purchased the shares for around the price of Rs. 310 for each share plans to sell them at a higher price.
” Bikaji, is famous for its Indian snacks, will probably get enough listing profits when it occurs,” said a senior executive of the brokerage.
The availability of Bikaji shares is not as abundant. Dealers anticipate that the stock floating to increase over the next few days. Numerous brokerages are reaching out to promoters of the company with an offer to purchase shares that are not listed. The initial public offering (IPO) could be launched shortly since the company is looking to sell for $1 billion.
Shares that are not listed are sometimes referred to as “pre-IPO share“ because listing takes place over a certain period of time; however, the exact date has not yet been set. After it is confirmed, shares begin trading on the market known as the grey market.
