Unlisted shares refer to shares of a company that are not traded on a recognized stock exchange. These shares are not easily accessible to the public, and their trading is restricted to a limited number of people. The process of buying and selling unlisted shares is different from that of listed shares, and it involves a certain level of risk.
In India, the demand for unlisted shares has been increasing in recent years, with many investors seeking to diversify their portfolios and benefit from the potential gains offered by these shares. One such company whose shares have gained significant attention is Oravel Stays Limited, the parent company of OYO Rooms.
Buying Unlisted Shares in India
The process of buying unlisted shares in India is not as straightforward as buying listed shares. These shares are not available on the stock market, and one needs to approach a broker who specializes in dealing with unlisted shares. Alternatively, one can also approach a company that has issued unlisted shares and express their interest in buying them.
Once a buyer and seller have agreed on a price for the unlisted shares, the buyer needs to transfer the funds to the seller’s account. The seller, in turn, will transfer the shares to the buyer’s demat account. However, it is important to note that unlisted shares are not regulated by the Securities and Exchange Board of India (SEBI), and the transfer of ownership is not recorded on a public platform.
Risks Involved
Investing in unlisted shares involves a certain level of risk as the market for these shares is not as transparent as that for listed shares. There is limited information available about the financial health and performance of the company, which makes it difficult to assess the potential risks and returns associated with investing in the shares.
Furthermore, unlisted shares are illiquid, which means that they cannot be easily bought or sold. This makes it difficult for investors to exit their positions in case the need arises. The lack of regulations and oversight also increases the risk of fraud and manipulation, which can lead to significant losses for investors.
Oravel Stays Limited Share Price
Oravel Stays Limited, the parent company of OYO Rooms, has been in the news recently for its upcoming IPO. The company’s share price has been a topic of discussion among investors, with many speculating on its potential value.
As of February 2023, the oravel stays limited share priceis not publicly available, as the company is still unlisted. However, it is expected to be listed on the stock market soon, and investors will be able to buy and sell its shares on a public platform.
Investing in unlisted shares can be a lucrative opportunity for investors looking to diversify their portfolios. However, it is important to approach such investments with caution and do thorough research before making any decisions. It is also essential to be aware of the risks involved and to work with a reputable broker who specializes in dealing with unlisted shares. As for Oravel Stays Limited, only time will tell whether its shares prove to be a good investment or not.
