Part of the problem is with the spread charged by these platforms. Specifically for Vikram Solar the price was 195/- but was available on platforms for 230/- around March time. A very close friend who works in the group mentioned at the time that some people are selling unlisted shares at 195/-. He also advised to stay away for what ever reasons.
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Iām considering investing in unlisted shares of Ola Electric and Waaree Energies Limited, especially since both companies are planning to launch IPOs soon. Given the current craze in the IPO market, securing an allotment has become nearly impossible. This has led me to explore the option of adding shares of these companies to my portfolio before they go public.
However, Iām a bit hesitant about Ola Electric. Their Profit After Tax (PAT) is still in the negative, which makes me uncertain about their valuations. On the other hand, Waaree Energies seems like a more promising bet.
Iād really appreciate hearing your thoughts and insights on this. Do you think these are good pre-IPO investments? Any advice or perspectives would be highly valuable to me. Thank you!
Avoid purchasing company shares before an IPO. This is often when many existing shareholders decide to sell off their stakes. Plus, thereās usually a lock-in period where you canāt sell your shares, and if the price drops, all you can do is watch. There are plenty of risks involved. For instance, if the IPO price is lower than the price in the unlisted market, youāll face a loss. Unless youāve been holding these shares for a long time, itās best to avoid investing before the IPO.
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Thanks for your input. I totally get where youāre coming from about the risks of buying shares before an IPO. It can be nerve-wracking, especially with the potential lock-in periods and the chance that the IPO price might be lower than what you paid in the unlisted market.
However, I think Waaree Energies might be a bit different. For one, they donāt have any real competitors in the listed market, which could make their IPO highly attractive. We saw something similar with IREDA, where everyone wanted in because it had such a strong position in its field. Also, Waaree Energies has some pretty solid fundamentals. Unlike Ola Electric, which is still losing money, Waaree has managed to increase its Profit After Tax by five times year-over-year. This kind of performance suggests theyāre doing something right and have a sustainable business model.
I do see your point about the risk, especially with companies that are more hype than substance, like Paytm was. But I feel like Waaree, with its unique market position and strong financials, could be a good opportunity at its current valuation.
One thing Iām still a bit unsure about is the lock-in period. My understanding is that it mainly affects big investors like QIBs and not so much retail investors. Iāll need to look into this more to be sure, but itās definitely something to consider.
Waaree isnāt making any semiconductor chips 
. Its price is inflated, so itās not the right time to jump in. Nothing against the company, but what if the IPO price is set at 1500? Itās better to wait for the IPO and buy then, instead of buying at a high price now and being stuck during the lock-in period. Your capital will just be tied up unnecessarily. But hey, itās your call.
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totally agree, but Waaree Energies is into solar panel manufacturing, and I am not aware of any other company which is listed and doing the same business except Perfect Infraengineers which are into thermal solar panels, which is a very niche market.
I am not too excited to buy it, just wanted to know the opinions regarding the valuations of the company, because as per me the valuations arenāt that stretched!
Valuations / price discovery in the unlisted market is always a challenge and often determined by broking platforms. Waaree energies is presently going through a earnings explosion aided by US biz where giant Chinese companies are facing trade barriers, make in India / PLI push in the domestic market. FY23 earnings were strong and FY24 will also be a blockbuster year and this may continue into FY25 too (not sure when the party would end). Ever since they alloted shares to Madhusudhan Kela around 550 in Jun23 the price in the unlisted market is on a crazy spree (presently around 2200). No one knows what is likely to be the IPO price. It may well launch at 1500 but given the appetite for this stock in the market given the tailwinds, wont we surprised if the stock doubles from that level post listing.
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This exact scenario is also playing out in OYO. Earlier this year market prices were in the range of 65-80. This week they are raising funding by alloting equity to a group of investors of Incred Capital at 29 per share. Immediately unlisted market price has also corrected to 30-32 levels in a matter of few weeks.
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Lucky enough to get from Unlisted 100 lot share, this is my first unlisted buy. The process as stated by other is long but got the shares within 2 months.
Goodpart, Incred will have some say in deciding pricing now and i would be surprised if price goes below 38-40 now, here on OYO fundamentals and P&L of the company will dictate pricing. Time to average was between 32-34 and now.
Disc : Invested and increased position.
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Possible to purchase Hyudair motor india ?
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Is anybody tracking (1) Tata Cap, (2) AFCONS
I checked up with Altius. They donāt have AFCONS.
Hello folks!!
Anyone tracking or shareholder of VCI Chemical, Urban Tots, Mitra FMCG, Bazzar india
Are Haldiramās shares available?
Problem with the unlisted world is that the sites keeping touting a few companyās shares.
Holding on to shares of Sterlite Power Limited since 2 years? What should be done? Is it gonna be worth waiting?
Yes i hold Urban tots shares.
Valuations of waaree energies is high and i wonāt be surprised if it gets corrected to fair value post listing. Right now everyone is chasing the momentum which is not a good sign even for good companies.
sir, can you please let me know from which platform you bought at what price?
I bought from Planify @ 54 Rs.
great level, congrats sirā¦
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