Reasonable valuation makes unlisted stocks attractive, say experts

However, investors have to deal with counterparty risk

Rakesh Jhunjhunwala recently said that his portfolio of unlisted shares has given him higher returns over the years compared to listed shares. If, after the ace investor’s view, you too are keen on a slice of the action in this market segment, first acquaint yourself with the potential upsides and risks.

Recently, Barbeque Nation listed on the bourses through an IPO. Investors, who had been holding the shares of this company for years, may decide to offload them, depending on how the market values their holdings.

A large number of other privately-held companies, too, have issued shares to investors and employees.

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