Trends in India’s Unlisted Shares Market: A Quiet Boom Brews Outside the Exchanges
If you follow India’s investing landscape as closely as I do, you’ve probably noticed something remarkable happening beneath the surface. The country’s unlisted shares market isn’t just quietly thriving; it’s booming. What was once a niche domain reserved for well-connected insiders is now being closely tracked by family offices, HNIs, and even a growing wave of curious retail investors. As someone committed to helping investors navigate new frontiers, I find the pace and magnitude of change here nothing short of fascinating.
Why All Eyes Are on Unlisted Shares Right Now
Not long ago, the only way to get a slice of the next big thing was to wait for an IPO. That has changed. With the unlisted shares segment now estimated at more than $50 billion, the real action is happening long before stocks list on the exchanges.
Companies drawing attention in this space include:
- NSE Unlisted Share
- OYO Unlisted Share
- Boat Unlisted Share
- Reliance Retail Unlisted Share
- Care Health Insurance Unlisted Share
The attraction is simple: early access. Post IPO pops may have lost their shine, but premiums in the private market are rising. As a veteran wealth advisor recently told me, “Investors are chasing early access to India’s next unicorns. Post IPO pops may be gone, but private premiums are rising.” In other words, investors are looking for asymmetric returns—the outsized rewards that come when you identify the right company before the crowd does.
The Power of Regulation and Technology
Another reason for this surge is how the market itself has evolved. A few years ago, access was mostly about who you knew. Today, SEBI’s growing oversight has introduced much-needed discipline, while KYC-integrated platforms like InCred Money have brought transparency and structure to what was once an opaque world.
Together, these shifts have made investing in unlisted shares:
- Easier to access
- Safer and more transparent
- More widely available to a broader set of investors
For those of us who believe in simplifying finance, this is a welcome step toward wider participation and smarter investing.
Riding the Waves of Volatility and Opportunity
The unlisted market, however, is not for the faint of heart. Price discovery is fluid, shaped as much by demand and sentiment as by fundamentals. Reliance Retail is a striking example—its unlisted shares have risen by nearly 60 percent over the past year and a half, driven largely by IPO anticipation. In contrast, companies like Mobikwik and Snapdeal have faced setbacks, particularly when their listing plans stalled during the funding winter.
Volatility, though, isn’t always a drawback. Many sophisticated investors see it as an advantage, preferring the unlisted market to small cap listed stocks because it offers genuine information arbitrage. In this space, thorough research and a healthy appetite for risk can be truly rewarding.
Startups Taking the Slow Lane to IPO
Recent IPO experiences have taught companies valuable lessons, prompting many to stay private longer. Rather than rushing to list, firms are raising later stage funding or enabling secondary share sales. For investors, this means longer holding periods—sometimes nerve wracking—but with the potential for greater rewards when things do fall into place. The result is a more mature unlisted market, with deeper liquidity and more creative ways for companies to unlock value.
ESOPs: Employees Step Into the Spotlight
Another trend, and one I find especially meaningful, is the growing liquidity around employee stock options. Companies such as Swiggy and Razorpay have been spearheading ESOP buybacks, creating benefits that extend well beyond employees’ paychecks.
These buybacks are:
- Allowing employees to realise wealth well before an IPO
- Strengthening retention in a competitive talent market
- Building a more inclusive culture of wealth creation in India’s startup ecosystem
Challenges and What Comes Next
None of this means the unlisted market is without its challenges. Some of the biggest issues still being worked through are:
- Price volatility and limited price discovery
- Uncertainty around taxation and regulatory clarity
- Limited exit options if IPO timelines get pushed out
- The need for stronger safeguards for retail investors
Yet, as regulators sharpen their focus on standardisation and transparency, the long-term trajectory appears promising.
For investors who are willing to do their homework, understand the risks, and diversify beyond listed stocks, India’s unlisted market is rapidly emerging as a strategic asset class. With smarter regulation and digital tools creating better access, more investors will soon find themselves participating in the growth engines of tomorrow—well before those companies ring the opening bell.
At InCred Money, we spend our days demystifying exactly these kinds of opportunities. Our mission is to help investors cut through the noise, approach alternatives with confidence, and perhaps even discover the next unicorn before it becomes a household name.
