Unlisted Shares, Unlimited Hype: What No One Tells You Until It's Too Late
# Highlights: We used to say "Avoid IPOs after listing" - now we’re saying “Avoid before listing too.” What a time to be alive.
From HDB Financials to Pharmeasy — a reality check on inflated pre-IPO prices.
Let’s Start With a Simple Truth:
Unlisted investing isn’t always smart money anymore.
In fact, more often than not — it’s now just retail money, dressed up with a premium, powered by FOMO.
What is Unlisted Investing?
Unlisted shares refer to equity of companies that are not yet publicly traded on a stock exchange. These are typically available to:
Employees (through ESOPs),
Early investors,
HNIs via private placements or grey market deals,
Brokers or intermediaries dealing in pre-IPO shares.
Unlisted investing used to be a playground for patient capital — those who could evaluate businesses without the daily noise of stock tickers. It was about getting in early before the public market inflated valuations.
But something has changed.
The Euphoria Is Getting Out of Hand
Let’s talk numbers about HDB Financials (HDFC Group)
Jan 2024: ₹600 in unlisted markets
Sep 2024: ₹1450 — near frenzy
Jun 2025: ₹1250
IPO Price Band: ₹740
People are sitting on 40–50% paper losses before the stock even lists. And this isn’t some obscure name — this is HDFC-backed.
Pharmeasy
At peak, it commanded a unicorn valuation in unlisted space
Raised fresh capital at 90% lower valuation later
Now filing IPO, many are holding shares that have no real value anymore
Ola, Paytm (pre-listing)
Unlisted premiums were wild — but post-listing reality hit hard
Many early investors faced severe losses even before any liquidity came.
But let’s keep going with the list ...
NSE, NSDL, MCX , Tata capital
Still being chased like there’s a limited supply of quality in the country.
Valuations? Off the charts.
Narratives? Plenty.
Due Diligence? " Are choddo Yr "
Why Is This Happening? A Look into Investor Psychology
The current wave of unlisted investing is driven not by insight — but by insecurity.
Here’s how FOMO creeps in:
“It’s unlisted, so it must be valuable.”
“Bro, everyone’s buying it… must be a goldmine.”
“It’s going to IPO next quarter. We’ll double.”
It’s no longer about understanding the company.
It’s about getting in before someone else — with zero regard for fundamentals.
"People aren’t asking what the company does. They’re asking when it’s listing."
Let that sink in.
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The Red Flags in Today’s Unlisted Market:
No audited financials shared
No real liquidity (you can’t just sell when you want to)
No official communication from the company
Only thing visible? The markup. And it’s driven by hype.
In some cases, investors can’t even tell you the market cap of the company they’re buying into. That’s not due diligence — that’s blind speculation.
But Isn’t Being Early Good?
Yes — if you enter early and cheap.
But many investors are entering in the 7th inning of a 9-inning game, yet paying prices as if they’re the founding team.
You're not early. You're just the exit for someone who got in before you.
“Being early is useless when you're paying the final price.”
Three Key Learnings You Can Take From This Madness:
1. Entry Price Matters — Always.
A good company bought at a bad price is still a bad investment.
2. Illiquidity is Not an Inconvenience — It’s a Risk.
You’ll realize this when you want to sell and find no buyers.
3. Know What You're Holding.
If you can’t explain the business, revenue model, or even valuation — you’re not investing. You’re just guessing.
🧠 A Final Thought:
“In public markets, you pay a premium for transparency.
In unlisted markets, you often pay a premium for ignorance.”
Unlisted investing isn’t evil. But right now, the way it's being sold definitely is.
The next time someone tells you to buy an unlisted stock because “listing soon bro!” —ask them:
What’s the market cap?
What are the revenues?
What’s the Moat? Is their Better Opportunities Available in listed segment ?
If they fumble, You have your answer.
If This Gave You Clarity:
Share this newsletter.
It might just save someone real money — or better, a future regret.
Ultimately, the best investment depends on your risk tolerance, return expectations & alignment with each company's strategic focus.
Happy investing!
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