in the unlisted space, the shares of Tata Technologies have recently done well. It will be worthwhile to pay attention to NSE, Reliance Retail and Bira too.
While the first three need no introduction, about Bira, one may consider the example of Peter Lynch who found a great company because his wife bought undergarments made by that company, and the company had hit upon a novel market strategy of placing these in the grocery stores, knowing women frequented them at least twice a week.
Bira makes beer which is growing. Recently I have heard more and more of it as marketing the craft beer in the NCR.
Disclaimer: I have all of the shares mentioned here.
Interesting point on Peter Lynch observation. Scuttlebut is the only way to get a better understanding in the Unlisted Space. Studds could be another good bet.
Discl: Invested in Tata Technologies
Yes. Studds seem to be good. Popular product. I have not seen its financials though.
Available on their website - nice set of disclosures in the AR
Can you please share:
where you purchased the unlisted shares from?
How is the price determined? Is it non-negotiable?
You can buy through Altius investech. Share prices are non negotiable and depends on the quantity.
Once you trf the money, shares generally get trf’ed same day in your demat. And you can check the same through CDSL.
You can negotiate. They assure that they may give at less than the listed price. However, sometimes they are also not available at the price they show. So it is all demand and supply too. But I am happy with that site.
They don’t show in my portfolio, but show in the demat.
I have bought from them, but there are many sites. About negotiations, I wanted to buy Tata Technologies the day they filed the DHRP, at ₹770 (the price for 1000 shares that day). They told me that no shares were available at that price and the holders are asking for ₹840. Later the price fell to around ₹800, and again rose recently.
Do check other sites too.
Sir, I’m a newbie to unlisted space. I checked all brokerage. All asks us to transfer money upfront. No mandate or letter of credit etc like mechanism. Is it safe? Do we have some complaining forum if they cheat on us?
That is true. Here somebody had also complained that a broker took money for him and that was that. I found Altius on advice here. I have not had an unhappy experience with them.
Manipal Group to invest Rs 1,000 crore in Pharmeasy
In a significant development, API Holdings, the owner of online pharmacy PharmEasy and the promoter of Thyrocare, is currently engaged in discussions for a substantial fundraise aimed at repaying debt.
Will it be a game changer for the online medicine supplier which is in deep red?
It is unlisted share, and it is going for 19 to 21, depending on the supply and demand.
Disclaimer: Have made a small investment in it.
Parasram - Science of Investment buying the Tata Technologies shares at 970/-. Marketing email received in my inbox. Have no experience dealing with them.
Just recently joined the community and would like to add my two cents from personal experience in the unlisted market.
Used two vendors mostly, 3adeal and Altius Investech. It is also possible to place order online on both the websites (www.3adeal.com & www.altiusinvestech.com).
We need to get KYC registered with them before the order can be processed.
Post placing order, above dealers will normally ask for deal confirmation on mail or through whatsapp.
Post order confirmation and payment, shares appear in account in 1-2 working days (CDSL shares notification as well when these are debited / credited) however we cannot trade them on exchanges. Personally, had no issues with both.
Exercise caution when dealing with unlisted market. Few investors in Reliance retail may be up for a shock since unlisted space quoted it at 2500
It’s cheaper than the market price. Not sure about the agency that’s offering it to you.
This is a terrible news. The market price right now is ₹2850, so they are paying less than half their price.
This is the second man made bomb I have come across since the equity of Laxmi Vilas Bank was written off.
Because the promoters have the majority, the resolutions would be passed. They are not asking the share holders to tender them, but have suo moto decided the price.
Though the share holders like me would suffer, it will affect the reputation of the Reliance and in fact that of the unlisted market itself.
By this ruse, they are buying shares worth ₹2850 for ₹1362.
Last time they had to withdraw the scheme.
Normally when somebody wants to acquire shares, he has to offer premium. This sort of daylight robbery is unheard of.
If i understand, the unlisted space is not regulated by any govt agencies unlike listed. Even the price determination is just based on a very small number of buyer and seller who perform the trade directly through intermediaries ofcourse, with no officially determined last traded price. So on what basis to determine the extent of robbery is questionable.
Also the fair valuation by 2 independent advisors which were considered were around 850-880 range so they are indeed paying a premium over a acceptable metrics.
just my 2 cents as a small retail investor with no knowledge about unlisted space.
The market price of Reliance Retail never made sense to me. At the price of 2825 the market cap is ₹14,09,794.36 Cr with P/E of 304 while Reliance Industries is available at ₹ 17,81,790 Cr. market cap with 26.7 P/E. Holding company discount also doesn’t justify its valuation.
I would suggest you look into the valuation of Tata Technologies Ltd, it is valued at par with Tata Elxsi but it’s growth and profitability is not comparable to it. It is also more cyclical in nature and had burst of growth and high profitability just before ipo.
I have made the same mistake of buying Studds Accessories at high valuation. Unlisted companies rarely trade at low valuation and when they do, many options are available in the listed space.