NOT SO LISTLESS

The market in shares of unlisted companies is buzzing. And contrary to what you might think, it is all kosher

- SAMIE MODAK

On May 10, after a typical workday, three young colleagues walk into a bar to catch the Indian Premier League (IPL) match between Gujarat Titans and Chennai Super Kings (CSK). While ordering their favourite drinks on a humid Mumbai evening, the finance sector executives discuss how turbulent the secondary market has become amid the start of the marathon general elections.

The points of discussion revolve mostly around investing - will the turbulence continue, what if Prime Minister Narendra Modi fails to bag a third term, and will a knee-jerk fall in the markets be a good buying opportunity? As they get a bit tipsy, one of them laments: "Imagine the money we would have made if, instead of guzzling beer every week, we had invested in Bira or AB InBev's unlisted shares?"

He went on: "Imagine the money that has gone down the drain to catch up on IPL matches, placing bets on the CSK stock would have been a more prudent decision."

One cannot be blamed for wondering that the conversation has gone into dream land. Except that it is rooted in reality. Buying and selling of unlisted shares of popular brands such as Bira, AB InBev (maker of Hoegaarden and Budweiser), CSK, Tata Capital, and the National Stock Exchange of India (NSE) has become as easy as dealing in shares of listed companies, thanks to the services of more than a dozen online platforms that specialise in it.

"If the IPO pipeline is strong, there is buoyancy in the unlisted market. Profitable trade for several years has been scooping up shares of the companies ahead of their IPO," says Dinesh Gupta, director of Unlisted Zone, a leading platform for buying and selling of unlisted shares.

IPO boost