HNI wealth · Unlisted Equity
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Pre-IPO investing means buying shares in a company before it lists on the stock exchange, typically 6-24 months before IPO. Access points: direct from company (rare), ESOP secondary market (selling employee), broker platforms (Alteria, INDmoney Pre-IPO, Unlistedzone).
SEBI (LODR) | FEMA | IT Act, Sec 45
Pricing: No official market price. Typically priced at: last funding round valuation (±20%), or a multiple of projected earnings/revenue. Verify the actual last round valuation, many platforms inflate pre-IPO prices. Key risks: IPO may not happen (or gets delayed years). Company may be overvalued. Shares may be "locked-in" for 6 months post-IPO. No liquidity until listing. Lock-in post-IPO: Shares held before a certain date may be subject to SEBI lock-in for 6 months from IPO date for pre-IPO shareholders (not retail, specifically shares from allotment).
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