How India's Unlisted Share Market Works? | The valuation School

The Valuation School

The Valuation School

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In this episode of Weekly Bazaar Talk, we decode India's Unlisted Share Market, an informal market where investors buy and sell company shares outside recognised stock exchanges.

We'll understand how this market operates, why founders, employees and institutional investors sell their shares before an IPO, and how dealers and intermediaries connect buyers with sellers.

In this video, you'll learn:
What are unlisted shares, and how does India's grey market work?
Who sells shares before an IPO, and why?
How do dealers, brokers and unlisted-share platforms operate?
Who determines unlisted share prices, and why do platforms quote different prices?
What are the major risks of investing in unlisted companies?
What happened in the Reliance Retail capital-reduction case?
Why can an IPO be priced below its earlier unlisted-market quotes?
What is Grey Market Premium (GMP), and why does it fluctuate?
How is the actual IPO listing price determined on the stock exchange?
Why should investors look beyond GMP when evaluating an IPO?

By the end of this episode, you'll understand the economics behind India's unlisted market and why buying shares before an IPO isn't necessarily the same as getting a good investment opportunity.

Disclaimer: This video is for educational purposes only and does not constitute investment advice. Unlisted shares involve liquidity, valuation, counterparty and other risks. Always conduct independent research before making investment decisions.

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Want to revise what you learned in this video?

I have created additional resources to help you understand and test your knowledge of Unlisted market:

📑 Session Slides:
Download the complete presentation used in this video and revise the concepts:
https://drive.google.com/file/d/1kd7j...

📊 Two pager summary PDF: https://drive.google.com/file/d/1LUMM...

📝 Test Your Understanding: https://forms.gle/Cyt65kKDjBkbZBSS9

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