What are Pre-IPO shares, Unlisted and Delisted Shares? (i) Pre IPO Shares: Every company needs funds to run the business. Funds are raised via debt or Equity. When funds are raised via Equity, the investors who are investing in the company want a good return of their investment. Let us suppose investors have invested Rs.500 Crores in the company. Now after 5 years they want to exit and hand over company shares to other investors. So accordingly, the company plans for an IPO to give exit to these investors and generally such information comes in the media. Before the launch of such IPOs, we at Planify arrange Pre-IPO shares to our investors.
Benefits of Pre IPO Shares: These days, due to more awareness via social media/news-papers/news channels, IPOs receive a lot of attention and good IPOs are subscribed heavily. Therefore, getting a single lot in an IPO is very difficult. Here, the Pre-IPO shares play a vital role. You can purchase these shares well below the IPO price before it actually launches on exchanges and gets the maximum benefit. The only lacuna in Pre-IPO shares is that there is a lock-in period of one year. It means you can’t sell stocks before one year from the date of listing. However, we at Planify consider that this should not be an issue because it is a well-known phenomenon that equity always rewards its investors who invest for