SlideShare a Scribd company logo
1 of 25
Download to read offline
Call / Text
88309-24330
Do you invest in
Unlisted Shares?
By the end of this presentation, you might start
Call / Text
88309-24330
What are unlisted shares?
Shares of private limited companies or
deemed public limited companies are called
unlisted shares.
These are pre-IPO companies whose shares
are not yet available for regular Buy/Sell on
the stock exchanges but can be traded
privately like any other asset
Call / Text
88309-24330
How is it different?
Shares of public ltd. companies available on
the stock exchanges trade at a price that
reflects all available information.
There is very little scope to pick good shares
at low cost as every bit of news is known to
everyone at once.
Unlisted shares, on the other hand, offer many
advantages
Call / Text
88309-24330
Advantage #1: Valuation
A unicorn like BharatPe today worth $5
billion was once a small company worth <$5
million. Only big venture capitalists could
invest in such companies and benefit
But now unlisted shares allow you to invest in
promising companies at low valuation thus
getting more upside from your smart
decisions
Call / Text
88309-24330
Advantage #2: Agile
Smaller companies are agile and respond
faster to changes and latch on to new
opportunities before larger rivals can
In 5 years, Zerodha went from a small
brokerage to India’s and now the world’s
largest retail brokerage platform using the
power of technology
Call / Text
88309-24330
Advantage #3: Low volatility
Intraday traders and speculators cause
extreme fluctuations in share prices of listed
companies; but unlisted shares show only
minor volatility
Shares of Mohan Meakin (maker of Old
Monk rum) have grown slow and steady at
20-25% per year on an avg. giving it’s
shareholders peace of mind
Call / Text
88309-24330
Advantage #4: Rapid Growth
Smaller companies create challenger brands
that take advantage of the mis-pricing of
established players. Thus they have ample
scope to capture market share
The Man Company took advantage of
Gilette, Colgate and Emami’s rigid pricing to
create a new product line and doubled sales
every 6 months to become a market leader
Call / Text
88309-24330
Advantage #5: Diversification
Diversifying your investment across size,
sector and geography can help you manage
risk. Regional brands are an important
addition to a balanced portfolio
Bikaji Foods a prominent player in packaged
foods in West India can balance an FMCG
themed portfolio by offering it’s unique
business footprint
Call / Text
88309-24330
Advantage #6: Negotiable
Unlike the open bidding system of stock
exchanges, unlisted share deals are negotiable
between buyer and seller and allow some
bargaining of price based on volume and
urgency
Unlisted shares of Tata Technologies were
sold anywhere between Rs 300-600 in the
year prior to its IPO
Call / Text
88309-24330
Advantage #7: Sure allotment
Indiscriminate bidding by IPO speculators
leads to failed allotment for genuine investors.
On the other hand, being an OTC deal,
unlisted shares offer confirmed allotment
By gradually acquiring unlisted shares of CSB
Bank over a period of 2 years, investors were
able to exit after IPO with 150% gains
Call / Text
88309-24330
Breakthrough stocks for 2024
Tata Capital API Holdings FINO Paytech Chennai SuperKings
HDB Financial Le Travenues Tech One Mobikwik Systems Nayara Energy
Call / Text
88309-24330
Tata Capital – Sleeping Giant
Parameter Performance
Valuation
Agility
Volatility
Growth
Diversification
Negotiability
Allottment
Backed by Tata’s legendary
management, Tata Capital
offers everything from high-
frequency payday loans to
long term mortgages.
Low cost of capital, wide
distribution and data
insights from Tata Retail and
E-Comm offers this company
unique insights into
borrower’s needs
Call / Text
88309-24330
Pharmeasy (API) – True Disruptor
Parameter Performance
Valuation
Agility
Volatility
Growth
Diversification
Negotiability
Allottment
Straddling the entire
healthcare space, API teams
up its popular brand
‘Pharmeasy’ with subsidiaries
Thyrocare, a leader in
diagnostics, DocOn, a doctor
consultation platform and
AknaMed, a hospital supply
chain company. A Centicorn
in the making
Call / Text
88309-24330
FINO Paytech – A safe bet
Parameter Performance
Valuation
Agility
Volatility
Growth
Diversification
Negotiability
Allottment
FINO backed by ICICI Bank
and Blackstone pioneered
financial inclusivity bringing
banking and payments to
the doorsteps of millions of
unbanked Indians with
mobile ATMs and merchant
payment systems.
FINO Payments bank (Soon
to become FINO SFB) is a
listed subsidiary of FINO
Paytech
Call / Text
88309-24330
Chennai SuperKings – Fan Fav!
What can one say about CSK
that hasn’t been said before!
A legion of fans, sold-out
events, early mover in
merchandizing, team
endorsements and
sponsorships and an
impressive record of titles. If
you believe in India and in
Cricket, then rest assured
CSK will be bigger than New
York Yankees or Manchester
United
Parameter Performance
Valuation
Agility
Volatility
Growth
Diversification
Negotiability
Allottment
Call / Text
88309-24330
HDB Fin – Another blowout IPO
When HDFC Bank is already
a reputed lender why a
separate NBFC you might
ask? HDB complements it’s
parent in offering a gamut of
loans with flexible tenures
and low rates in areas with
limited presence of the main
bank. Together the two serve
India’s complex & diverse
borrowing needs
Parameter Performance
Valuation
Agility
Volatility
Growth
Diversification
Negotiability
Allottment
Call / Text
88309-24330
IXIGO – Full steam ahead
A leader in private railway
ticketing, IXIGO recently
acquired AbhiBUS, a bus
ticketing platform to bring
world-class travel experience
to match India’s vastly
improved railway network.
With 100 million users, the
company is set for an IPO
having received SEBI
approval for a 1600-crore
raise
Parameter Performance
Valuation
Agility
Volatility
Growth
Diversification
Negotiability
Allottment
Call / Text
88309-24330
MobiKwik – Payments super app
With 140 million active
users, India’s third largest
payment wallet is avoiding
the mistakes of it’s bigger
rivals with disciplined
diversification and focus on
customer experience
resulting in Rs 6.5 revenue
earned per Rs 1 of
marketing. It’s 700-crore IPO
has been approved by SEBI
Parameter Performance
Valuation
Agility
Volatility
Growth
Diversification
Negotiability
Allottment
Call / Text
88309-24330
Nayara Energy – Booming profits
Parameter Performance
Valuation
Agility
Volatility
Growth
Diversification
Negotiability
Allottment
A consortium led by Rosneft
and UCP of Russia acquired
Essar Oil, India’s second
largest refinery, later
rebranded as Nayara. It finds
itself in a geo-political sweet
spot having a secure source
of low cost crude from
Russia. As a result it has one
of the strongest financials
reporting an 800% profit
growth in FY23
Call / Text
88309-24330
How to invest
Follow this link to request for investment advice on phone
https://forms.office.com/r/QmKYLgbjfE
You need to have the following
 Your PAN card copy
 Copy of cancelled cheque of your bank account
 CML/CMR copy provider by your broker or at the very least,
BOID of your trading account
 Funds ready for transfer
Call / Text
88309-24330
How much to invest
Stock Conservative Balanced Bold
Tata Cap 25% 15% 10%
Pharmeasy 11% 15% 15%
FINO 8% 10% 5%
SuperKings 10% 15% 20%
HDB Fin 12% 10% 5%
Ixigo 8% 10% 15%
Mobikwik 8% 10% 20%
Nayara 18% 15% 10%
TOTAL 100% 100% 100%
FUNDS 5 - 15 Lac 10 - 25 Lac 20 - 50 Lac
Call / Text
88309-24330
How to exit
Unlisted shares can be bought and sold just like any other asset
like a car or an apartment. Upon exit, the difference in buy and sell
price is taxable as LTCG after a holding period of 24 months or
more with indexation.
Return on your unlisted shares may be realized by
1) Selling in private market before IPO
2) Selling on the stock exchanges after IPO
3) Shares might get swapped if investee company gets
merged/acquired
4) Shares may be bought back by the company itself to reduce
equity under Section 66 of Companies Act
Call / Text
88309-24330
Why ARV Associates
 Dedicated team of researchers to study target company’s capital
structure and financials after taking inputs from reputed CA, CS,
CFP, corporate lawyers and researchers
 Dedicated team to undertake in-depth news gathering
regarding the company including analyst reports, participation
in AGMs and investor calls, company announcements and press
conferences, direct discussions with employees and
competitors. The team also tracks customer complaints and
employee feedback data
 Over Rs 150 cr of shares sold and over Rs 250 cr of wealth
added for investors
 Balanced decisions keeping all business risks in mind
 48+ years of cumulative investment banking and equity trading
experience of the partners
Call / Text
88309-24330
Price range at a glance
Low High
Tata Cap 660 750
Pharmeasy 8 22
FINO 126 180
SuperKings 166 207
HDB Fin 855 1100
Ixigo 90 150
Mobikwik 400 750
Nayara 360 480
Share prices may vary basis availability of new information updates regarding the
company. Some negotiation in price is possible based on quantity; however investors are
advised to get quotes in writing
Call / Text
88309-24330
Disclaimer
This deck is intended for private circulation only. Do not share,
forward, copy, edit or print without prior consent of M/s ARV
Associates.
This deck is not a solicitation for investment and is rather meant
to serve as an educational primer for those seeking information
about the subject.
Sincere attempt has been made to ensure that the information
contained here is factually accurate and current. However, viewers
are advised to independently verify the same before making any
investment decisions. A list of authorized sources of information
will be provided upon request
Send feedback to arvassociates.in@gmail.com

More Related Content

Similar to Unlisted Shares Primer

Morning Tea: ‪AUROPHARMA‬, SRTRANSFIN‬
Morning Tea: ‪AUROPHARMA‬, SRTRANSFIN‬Morning Tea: ‪AUROPHARMA‬, SRTRANSFIN‬
Morning Tea: ‪AUROPHARMA‬, SRTRANSFIN‬choice broking
 
Tamohara investment newsletter May 2015
Tamohara investment newsletter   May 2015Tamohara investment newsletter   May 2015
Tamohara investment newsletter May 2015tamohara
 
Investment Banking
Investment BankingInvestment Banking
Investment BankingNavin Bafna
 
Five Rules for Successful Stock Investing Book.pptx
Five Rules for Successful Stock Investing Book.pptxFive Rules for Successful Stock Investing Book.pptx
Five Rules for Successful Stock Investing Book.pptxYashJain483049
 
Building a systematic stock portfolio in only a few hours per year
Building a systematic stock portfolio in only a few hours per yearBuilding a systematic stock portfolio in only a few hours per year
Building a systematic stock portfolio in only a few hours per yearStockopedia
 
UnlistedGuru LLP (Corporate Brochure)
UnlistedGuru LLP (Corporate Brochure)UnlistedGuru LLP (Corporate Brochure)
UnlistedGuru LLP (Corporate Brochure)UnlistedGuru LLP
 
Netwealth portfolio construction series - Successful value investing in small...
Netwealth portfolio construction series - Successful value investing in small...Netwealth portfolio construction series - Successful value investing in small...
Netwealth portfolio construction series - Successful value investing in small...netwealthInvest
 
Morning Tea 04/09/2015
Morning Tea 04/09/2015Morning Tea 04/09/2015
Morning Tea 04/09/2015choice broking
 
CEO Questions.pdf
CEO Questions.pdfCEO Questions.pdf
CEO Questions.pdfAaron Allen
 
Buying & Selling Distressed Businesses
Buying & Selling Distressed BusinessesBuying & Selling Distressed Businesses
Buying & Selling Distressed BusinessesAlexReedBrewer
 
Full Analyst Report: IntelGenx Tech. Rating: Buy. IntelGenx Looking Towards A...
Full Analyst Report: IntelGenx Tech. Rating: Buy. IntelGenx Looking Towards A...Full Analyst Report: IntelGenx Tech. Rating: Buy. IntelGenx Looking Towards A...
Full Analyst Report: IntelGenx Tech. Rating: Buy. IntelGenx Looking Towards A...Viral Network Inc
 
Morning tea 20 10-2015
Morning tea 20 10-2015Morning tea 20 10-2015
Morning tea 20 10-2015choice broking
 
Pick of the week asian paint
Pick of the week asian paintPick of the week asian paint
Pick of the week asian paintChoice Equity
 
Pick of the week asianpaint 07012017
Pick of the week   asianpaint 07012017Pick of the week   asianpaint 07012017
Pick of the week asianpaint 07012017Choice Equity
 

Similar to Unlisted Shares Primer (20)

Choice - Morning Tea
Choice - Morning TeaChoice - Morning Tea
Choice - Morning Tea
 
Morning Tea: ‪AUROPHARMA‬, SRTRANSFIN‬
Morning Tea: ‪AUROPHARMA‬, SRTRANSFIN‬Morning Tea: ‪AUROPHARMA‬, SRTRANSFIN‬
Morning Tea: ‪AUROPHARMA‬, SRTRANSFIN‬
 
Tamohara investment newsletter May 2015
Tamohara investment newsletter   May 2015Tamohara investment newsletter   May 2015
Tamohara investment newsletter May 2015
 
6 july equity report
6 july equity report6 july equity report
6 july equity report
 
Investment Banking
Investment BankingInvestment Banking
Investment Banking
 
Equity Special Weekly Report
Equity Special Weekly ReportEquity Special Weekly Report
Equity Special Weekly Report
 
Valuation
ValuationValuation
Valuation
 
Terex Equipment
Terex EquipmentTerex Equipment
Terex Equipment
 
Five Rules for Successful Stock Investing Book.pptx
Five Rules for Successful Stock Investing Book.pptxFive Rules for Successful Stock Investing Book.pptx
Five Rules for Successful Stock Investing Book.pptx
 
Building a systematic stock portfolio in only a few hours per year
Building a systematic stock portfolio in only a few hours per yearBuilding a systematic stock portfolio in only a few hours per year
Building a systematic stock portfolio in only a few hours per year
 
UnlistedGuru LLP (Corporate Brochure)
UnlistedGuru LLP (Corporate Brochure)UnlistedGuru LLP (Corporate Brochure)
UnlistedGuru LLP (Corporate Brochure)
 
Netwealth portfolio construction series - Successful value investing in small...
Netwealth portfolio construction series - Successful value investing in small...Netwealth portfolio construction series - Successful value investing in small...
Netwealth portfolio construction series - Successful value investing in small...
 
Morning Tea 04/09/2015
Morning Tea 04/09/2015Morning Tea 04/09/2015
Morning Tea 04/09/2015
 
CEO Questions.pdf
CEO Questions.pdfCEO Questions.pdf
CEO Questions.pdf
 
Buying & Selling Distressed Businesses
Buying & Selling Distressed BusinessesBuying & Selling Distressed Businesses
Buying & Selling Distressed Businesses
 
Full Analyst Report: IntelGenx Tech. Rating: Buy. IntelGenx Looking Towards A...
Full Analyst Report: IntelGenx Tech. Rating: Buy. IntelGenx Looking Towards A...Full Analyst Report: IntelGenx Tech. Rating: Buy. IntelGenx Looking Towards A...
Full Analyst Report: IntelGenx Tech. Rating: Buy. IntelGenx Looking Towards A...
 
Morning tea 20 10-2015
Morning tea 20 10-2015Morning tea 20 10-2015
Morning tea 20 10-2015
 
Pick of the week asian paint
Pick of the week asian paintPick of the week asian paint
Pick of the week asian paint
 
Pick of the week asianpaint 07012017
Pick of the week   asianpaint 07012017Pick of the week   asianpaint 07012017
Pick of the week asianpaint 07012017
 
Choice - Morning Tea
Choice - Morning TeaChoice - Morning Tea
Choice - Morning Tea
 

Recently uploaded

Building pressure? Rising rents, and what to expect in the future
Building pressure? Rising rents, and what to expect in the futureBuilding pressure? Rising rents, and what to expect in the future
Building pressure? Rising rents, and what to expect in the futureResolutionFoundation
 
Thoma Bravo Equity - Presentation Pension Fund
Thoma Bravo Equity - Presentation Pension FundThoma Bravo Equity - Presentation Pension Fund
Thoma Bravo Equity - Presentation Pension FundAshwinJey
 
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxIntroduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxDrRkurinjiMalarkurin
 
Banking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxBanking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxANTHONYAKINYOSOYE1
 
2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptxHenry Tapper
 
10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdf10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdfglobusfinanza
 
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτος
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτοςΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτος
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτοςNewsroom8
 
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptx
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptxOAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptx
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptxhiddenlevers
 
Global Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride ConsultingGlobal Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride Consultingswastiknandyofficial
 
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...Amil baba
 
Hello this ppt is about seminar final project
Hello this ppt is about seminar final projectHello this ppt is about seminar final project
Hello this ppt is about seminar final projectninnasirsi
 
2B Nation-State.pptx contemporary world nation
2B  Nation-State.pptx contemporary world nation2B  Nation-State.pptx contemporary world nation
2B Nation-State.pptx contemporary world nationko9240888
 
What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024prajwalgopocket
 
ekthesi-trapeza-tis-ellados-gia-2023.pdf
ekthesi-trapeza-tis-ellados-gia-2023.pdfekthesi-trapeza-tis-ellados-gia-2023.pdf
ekthesi-trapeza-tis-ellados-gia-2023.pdfSteliosTheodorou4
 
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024Money Forward
 
TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptx
TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptxTACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptx
TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptxKathlynVillar
 
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdf
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdfZimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdf
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdfFREELANCER
 
Demographic transition and the rise of wealth inequality
Demographic transition and the rise of wealth inequalityDemographic transition and the rise of wealth inequality
Demographic transition and the rise of wealth inequalityGRAPE
 
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshare
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshareAon-UK-DC-Pension-Tracker-Q1-2024. slideshare
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshareHenry Tapper
 

Recently uploaded (19)

Building pressure? Rising rents, and what to expect in the future
Building pressure? Rising rents, and what to expect in the futureBuilding pressure? Rising rents, and what to expect in the future
Building pressure? Rising rents, and what to expect in the future
 
Thoma Bravo Equity - Presentation Pension Fund
Thoma Bravo Equity - Presentation Pension FundThoma Bravo Equity - Presentation Pension Fund
Thoma Bravo Equity - Presentation Pension Fund
 
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptxIntroduction to Health Economics Dr. R. Kurinji Malar.pptx
Introduction to Health Economics Dr. R. Kurinji Malar.pptx
 
Banking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptxBanking: Commercial and Central Banking.pptx
Banking: Commercial and Central Banking.pptx
 
2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx2024-04-09 - Pension Playpen roundtable - slides.pptx
2024-04-09 - Pension Playpen roundtable - slides.pptx
 
10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdf10 QuickBooks Tips 2024 - Globus Finanza.pdf
10 QuickBooks Tips 2024 - Globus Finanza.pdf
 
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτος
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτοςΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτος
ΤτΕ: Ανάπτυξη 2,3% και πληθωρισμός 2,8% φέτος
 
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptx
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptxOAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptx
OAT_RI_Ep18 WeighingTheRisks_Mar24_GlobalCredit.pptx
 
Global Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride ConsultingGlobal Economic Outlook, 2024 - Scholaride Consulting
Global Economic Outlook, 2024 - Scholaride Consulting
 
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...
Uk-NO1 Rohani Amil In Islamabad Amil Baba in Rawalpindi Kala Jadu Amil In Raw...
 
Hello this ppt is about seminar final project
Hello this ppt is about seminar final projectHello this ppt is about seminar final project
Hello this ppt is about seminar final project
 
2B Nation-State.pptx contemporary world nation
2B  Nation-State.pptx contemporary world nation2B  Nation-State.pptx contemporary world nation
2B Nation-State.pptx contemporary world nation
 
What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024What is sip and What are its Benefits in 2024
What is sip and What are its Benefits in 2024
 
ekthesi-trapeza-tis-ellados-gia-2023.pdf
ekthesi-trapeza-tis-ellados-gia-2023.pdfekthesi-trapeza-tis-ellados-gia-2023.pdf
ekthesi-trapeza-tis-ellados-gia-2023.pdf
 
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
 
TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptx
TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptxTACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptx
TACLOBAN-CITY-DIVISION-POPQUIZ-2023.pptx
 
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdf
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdfZimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdf
Zimbabwe's New Gold-Backed Currency- A Path to Stability or Another Monetary.pdf
 
Demographic transition and the rise of wealth inequality
Demographic transition and the rise of wealth inequalityDemographic transition and the rise of wealth inequality
Demographic transition and the rise of wealth inequality
 
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshare
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshareAon-UK-DC-Pension-Tracker-Q1-2024. slideshare
Aon-UK-DC-Pension-Tracker-Q1-2024. slideshare
 

Unlisted Shares Primer

  • 1. Call / Text 88309-24330 Do you invest in Unlisted Shares? By the end of this presentation, you might start
  • 2. Call / Text 88309-24330 What are unlisted shares? Shares of private limited companies or deemed public limited companies are called unlisted shares. These are pre-IPO companies whose shares are not yet available for regular Buy/Sell on the stock exchanges but can be traded privately like any other asset
  • 3. Call / Text 88309-24330 How is it different? Shares of public ltd. companies available on the stock exchanges trade at a price that reflects all available information. There is very little scope to pick good shares at low cost as every bit of news is known to everyone at once. Unlisted shares, on the other hand, offer many advantages
  • 4. Call / Text 88309-24330 Advantage #1: Valuation A unicorn like BharatPe today worth $5 billion was once a small company worth <$5 million. Only big venture capitalists could invest in such companies and benefit But now unlisted shares allow you to invest in promising companies at low valuation thus getting more upside from your smart decisions
  • 5. Call / Text 88309-24330 Advantage #2: Agile Smaller companies are agile and respond faster to changes and latch on to new opportunities before larger rivals can In 5 years, Zerodha went from a small brokerage to India’s and now the world’s largest retail brokerage platform using the power of technology
  • 6. Call / Text 88309-24330 Advantage #3: Low volatility Intraday traders and speculators cause extreme fluctuations in share prices of listed companies; but unlisted shares show only minor volatility Shares of Mohan Meakin (maker of Old Monk rum) have grown slow and steady at 20-25% per year on an avg. giving it’s shareholders peace of mind
  • 7. Call / Text 88309-24330 Advantage #4: Rapid Growth Smaller companies create challenger brands that take advantage of the mis-pricing of established players. Thus they have ample scope to capture market share The Man Company took advantage of Gilette, Colgate and Emami’s rigid pricing to create a new product line and doubled sales every 6 months to become a market leader
  • 8. Call / Text 88309-24330 Advantage #5: Diversification Diversifying your investment across size, sector and geography can help you manage risk. Regional brands are an important addition to a balanced portfolio Bikaji Foods a prominent player in packaged foods in West India can balance an FMCG themed portfolio by offering it’s unique business footprint
  • 9. Call / Text 88309-24330 Advantage #6: Negotiable Unlike the open bidding system of stock exchanges, unlisted share deals are negotiable between buyer and seller and allow some bargaining of price based on volume and urgency Unlisted shares of Tata Technologies were sold anywhere between Rs 300-600 in the year prior to its IPO
  • 10. Call / Text 88309-24330 Advantage #7: Sure allotment Indiscriminate bidding by IPO speculators leads to failed allotment for genuine investors. On the other hand, being an OTC deal, unlisted shares offer confirmed allotment By gradually acquiring unlisted shares of CSB Bank over a period of 2 years, investors were able to exit after IPO with 150% gains
  • 11. Call / Text 88309-24330 Breakthrough stocks for 2024 Tata Capital API Holdings FINO Paytech Chennai SuperKings HDB Financial Le Travenues Tech One Mobikwik Systems Nayara Energy
  • 12. Call / Text 88309-24330 Tata Capital – Sleeping Giant Parameter Performance Valuation Agility Volatility Growth Diversification Negotiability Allottment Backed by Tata’s legendary management, Tata Capital offers everything from high- frequency payday loans to long term mortgages. Low cost of capital, wide distribution and data insights from Tata Retail and E-Comm offers this company unique insights into borrower’s needs
  • 13. Call / Text 88309-24330 Pharmeasy (API) – True Disruptor Parameter Performance Valuation Agility Volatility Growth Diversification Negotiability Allottment Straddling the entire healthcare space, API teams up its popular brand ‘Pharmeasy’ with subsidiaries Thyrocare, a leader in diagnostics, DocOn, a doctor consultation platform and AknaMed, a hospital supply chain company. A Centicorn in the making
  • 14. Call / Text 88309-24330 FINO Paytech – A safe bet Parameter Performance Valuation Agility Volatility Growth Diversification Negotiability Allottment FINO backed by ICICI Bank and Blackstone pioneered financial inclusivity bringing banking and payments to the doorsteps of millions of unbanked Indians with mobile ATMs and merchant payment systems. FINO Payments bank (Soon to become FINO SFB) is a listed subsidiary of FINO Paytech
  • 15. Call / Text 88309-24330 Chennai SuperKings – Fan Fav! What can one say about CSK that hasn’t been said before! A legion of fans, sold-out events, early mover in merchandizing, team endorsements and sponsorships and an impressive record of titles. If you believe in India and in Cricket, then rest assured CSK will be bigger than New York Yankees or Manchester United Parameter Performance Valuation Agility Volatility Growth Diversification Negotiability Allottment
  • 16. Call / Text 88309-24330 HDB Fin – Another blowout IPO When HDFC Bank is already a reputed lender why a separate NBFC you might ask? HDB complements it’s parent in offering a gamut of loans with flexible tenures and low rates in areas with limited presence of the main bank. Together the two serve India’s complex & diverse borrowing needs Parameter Performance Valuation Agility Volatility Growth Diversification Negotiability Allottment
  • 17. Call / Text 88309-24330 IXIGO – Full steam ahead A leader in private railway ticketing, IXIGO recently acquired AbhiBUS, a bus ticketing platform to bring world-class travel experience to match India’s vastly improved railway network. With 100 million users, the company is set for an IPO having received SEBI approval for a 1600-crore raise Parameter Performance Valuation Agility Volatility Growth Diversification Negotiability Allottment
  • 18. Call / Text 88309-24330 MobiKwik – Payments super app With 140 million active users, India’s third largest payment wallet is avoiding the mistakes of it’s bigger rivals with disciplined diversification and focus on customer experience resulting in Rs 6.5 revenue earned per Rs 1 of marketing. It’s 700-crore IPO has been approved by SEBI Parameter Performance Valuation Agility Volatility Growth Diversification Negotiability Allottment
  • 19. Call / Text 88309-24330 Nayara Energy – Booming profits Parameter Performance Valuation Agility Volatility Growth Diversification Negotiability Allottment A consortium led by Rosneft and UCP of Russia acquired Essar Oil, India’s second largest refinery, later rebranded as Nayara. It finds itself in a geo-political sweet spot having a secure source of low cost crude from Russia. As a result it has one of the strongest financials reporting an 800% profit growth in FY23
  • 20. Call / Text 88309-24330 How to invest Follow this link to request for investment advice on phone https://forms.office.com/r/QmKYLgbjfE You need to have the following  Your PAN card copy  Copy of cancelled cheque of your bank account  CML/CMR copy provider by your broker or at the very least, BOID of your trading account  Funds ready for transfer
  • 21. Call / Text 88309-24330 How much to invest Stock Conservative Balanced Bold Tata Cap 25% 15% 10% Pharmeasy 11% 15% 15% FINO 8% 10% 5% SuperKings 10% 15% 20% HDB Fin 12% 10% 5% Ixigo 8% 10% 15% Mobikwik 8% 10% 20% Nayara 18% 15% 10% TOTAL 100% 100% 100% FUNDS 5 - 15 Lac 10 - 25 Lac 20 - 50 Lac
  • 22. Call / Text 88309-24330 How to exit Unlisted shares can be bought and sold just like any other asset like a car or an apartment. Upon exit, the difference in buy and sell price is taxable as LTCG after a holding period of 24 months or more with indexation. Return on your unlisted shares may be realized by 1) Selling in private market before IPO 2) Selling on the stock exchanges after IPO 3) Shares might get swapped if investee company gets merged/acquired 4) Shares may be bought back by the company itself to reduce equity under Section 66 of Companies Act
  • 23. Call / Text 88309-24330 Why ARV Associates  Dedicated team of researchers to study target company’s capital structure and financials after taking inputs from reputed CA, CS, CFP, corporate lawyers and researchers  Dedicated team to undertake in-depth news gathering regarding the company including analyst reports, participation in AGMs and investor calls, company announcements and press conferences, direct discussions with employees and competitors. The team also tracks customer complaints and employee feedback data  Over Rs 150 cr of shares sold and over Rs 250 cr of wealth added for investors  Balanced decisions keeping all business risks in mind  48+ years of cumulative investment banking and equity trading experience of the partners
  • 24. Call / Text 88309-24330 Price range at a glance Low High Tata Cap 660 750 Pharmeasy 8 22 FINO 126 180 SuperKings 166 207 HDB Fin 855 1100 Ixigo 90 150 Mobikwik 400 750 Nayara 360 480 Share prices may vary basis availability of new information updates regarding the company. Some negotiation in price is possible based on quantity; however investors are advised to get quotes in writing
  • 25. Call / Text 88309-24330 Disclaimer This deck is intended for private circulation only. Do not share, forward, copy, edit or print without prior consent of M/s ARV Associates. This deck is not a solicitation for investment and is rather meant to serve as an educational primer for those seeking information about the subject. Sincere attempt has been made to ensure that the information contained here is factually accurate and current. However, viewers are advised to independently verify the same before making any investment decisions. A list of authorized sources of information will be provided upon request Send feedback to arvassociates.in@gmail.com