Unlisted Stocks में Invest कैसे करे ?? Red Flags, Risk & Strategies with Chintan Parikh

This Face2Face video features an insightful discussion on investing in small, unlisted companies and SMEs, aimed primarily at retail investors balancing jobs or businesses alongside their investment pursuits. The guest, Chintan, an experienced investor with a strong background in engineering, MBA, and global IT exposure, shares his journey and knowledge about navigating the complex world of unlisted shares. He differentiates unlisted companies from startups, highlighting how many such companies are already profitable and established.

Chintan explains the challenges of investing in unlisted shares, specifically in terms of price discovery, liquidity, and extended investment horizons. Emphasising the need for rigorous due diligence, he advises investors to verify sources, understand company fundamentals, and maintain financial stability before entering this high-risk space. The conversation also covers essential concepts like pre-money and post-money valuation, share types (such as CCPS and OCPS), and the importance of evaluating promoters, Total Addressable Market (TAM), sector growth drivers, and regulatory scenarios affecting SMEs.

Throughout the discussion, Chintan highlights the value of networks, such as merchant bankers, Chartered Accountants, and industry events, in sourcing deals and acquiring reliable information. He stresses patience and disciplined investment strategies, sharing personal stories of successes and setbacks. The session ends with vital practical tips for retail investors, including the significance of brokerage security, record-keeping for tax compliance, and anticipating a minimum 2-3 year lock-in period before exits via IPO or secondary sales.

Overall, the video is a comprehensive guide for individuals interested in building wealth through unlisted shares, underlining extensive research, cautious optimism, and leveraging relationships to succeed in this challenging investment domain.