What are pre-IPO shares?
Pre-IPO shares are equity shares of a company that is not yet listed on a recognised stock exchange. Transactions take place privately between a buyer and seller, subject to availability, documentation and the company’s transfer restrictions.
The price is established through private-market demand and supply. It may differ materially from a future IPO price, and the company may never list.
When a company makes a public issue, it publishes offer documents first, such as a draft red herring prospectus and later a red herring prospectus. Other listing routes can involve different documents and steps. For a worked example of what one offer document confirms and what it leaves open, see our Jio Platforms RHP explainer.
How a transaction works
Ask for availability
Share the company name and quantity with our dealing desk.
Confirm the terms
Review the indicative price, lot size, documents and settlement instructions. Our unlisted share price checklist sets out what to confirm before you proceed.
Demat settlement
After confirmation, shares and funds move through the agreed bilateral process.
Risks to evaluate
- There may be no active buyer when you want to sell.
- Financial information can be less frequent than for listed companies.
- Valuations and indicative quotes can change without notice.
- An expected IPO can be delayed, repriced or cancelled.
- Even after a listing, pre-IPO shares are usually locked in for a period after IPO allotment.
See pre-IPO lock-in rules for who is locked in, for how long, and how to check your own end date.
Important: UnlistedHub is a dealer, not a stock exchange, stock broker, investment adviser or research analyst. Information on this page is educational and is not investment advice or a recommendation.