New Delhi: Unlisted market: Despite the epidemic of corona virus during the last nine months, the stock market has seen a strong boom. This has led to a flood of stocks performing strongly in the market. Due to this, the share prices have increased a lot.
On the other hand, in the unauthorized market of unlisted shares in 2020, many stocks performed well. Analysts believe that many investors showed more interest in the listed market than in the unlisted market, as it had more number of better opportunities.
But now they believe that due to expensive valuation, rich investors are once again turning to unlisted market. During the year 2020, the shares of many unlisted companies gave good returns to the investors, who kept up with endurance even during heavy selling.
At the top of this list was the name of Care Health Insurance, which traveled from Rs 30-35 to Rs 125-130. Earlier this company was known as Religare Health Insurance. During the health crisis, there was a strong increase in demand for health insurance.
Shares of IPL team Chennai Super Kings (CSK) also increased by almost three times to Rs 80-85 from the price of Rs 25-30. The 13th edition of the IPL took place in the United Arab Emirates. According to the company’s annual report, veteran investor Radhakishan Damani is continuously buying stakes in the company.
Mobile gaming company Nazara Technologies and Studs Accessories also doubled investors’ money. Both these companies benefited greatly during the Corona period. Nazara and Studs are planning to launch an IPO soon. Veteran investor Rakesh Jhunjhunwala has also invested in the scene.
Altius Wealth CEO Sandeep Ginodia said that many retail investors turned to the listed market during the lockdown as the number and availability of shares are more there.
He said, “Unlisted market has its limitations. For entry in it you need more risk appetite, large amount of money, maturity of investment and long term investment approach. While fruits can be eaten easily by breaking from the current listed market.”
Mukesh Ambani’s retail arm Reliance Retail also tripled investors’ money. The share price reached Rs 1,350-1,400. Many PE investors have bought stakes in this company. HDB Financial Services, NSE and Suryodaya Small Finance Bank also gave good returns to investors.
There is no regulator in the market of unlisted shares. But it is completely valid. Unlisted Zone co-founder Dinesh Gupta said, “In this market you have to invest all the money on your own. All the deals are in cash and there is no need for margin. Its volatility is also less during the sell-off.”
Both Ginodia and Gupta believe that there is more scope to deal wrongly in this market. For this reason the risk in unlisted market is also high. However, both believe that the value in this market is also high.
Many analysts believe that the unlisted market has more opportunities to create wealth in the long run as investors can buy a good stake in the company in the initial stages. He said, “That’s why many big and big investors are turning to this market.”
Vivek Bajaj, co-founder of StockEdge, said that the chances of opportunity and right valuation in this market are very less. He said, “Unlisted markets may once again make headlines. The next boom in the market may come off-market as the performance of these stocks has faded to comparative levels.”
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