NSE bonus issue: How to buy and sell unlisted shares?

Just like the normal equity markets, investors can buy and sell shares of unlisted companies through select online platforms or well-known wealth managers/ brokers.

NSE bonus issue tracker: The National Stock Exchange (NSE) of India on Monday, April 29, 2024, announced its plans to consider bonus issue of equity shares in its board meeting on Friday, May 03, 2024. Apart from that the NSE board will also consider a proposal for dividend for the financial year ended March 2024, and its earnings. READ ABOUT IT HERE

NSE is an unlisted stock in India, unlike couple of its peers namely - Bombay Stock Exchange (BSE) and the Multi Commodity Exchange (MCX). 

Despite this, you as an investor can buy and sell shares of NSE as they same are traded in the unlisted space. Platforms like Unlisted Arena, Unlisted Zone and Stockify provide avenues for buying and selling unlisted shares.

 

According to the trading platform, Unlisted Zone, shares of NSE were quoted at Rs 4,800 per share. Buyers opt to buy the shares in multiples of 100 shares. The online platform shows that NSE shares at present trade at 52-week, whereas the 52-week low stands at Rs 3,400.

Similarly, Stockify, another online trading platform for unlisted shares, shows availability of NSE shares at Rs 4,700 each.

That apart, one can buy and sell shares of unlisted companies through reputed investment banks, wealth managers or brokers. Just like listed shares, unlisted shares too are available and can be credited to demat account.

More about trading in unlisted shares

Manan Doshi, co-founder of Unlisted Arena, an online platform that facilitates buying and selling of unlisted shares, says awareness of unlisted market is much higher as compared to 5 years back. Earlier investors were not even aware that there existed an opportunity to invest in shares prior to an IPO.

Given the rise in participants, there is an improved liquidity and higher frequency of trades in the unlisted segment in recent times, Manan added.

Commenting on the trend, Manan said unlisted markets tend to mirror the trend in listed markets. Meaning, if there is a bull-run in the normal equity market, then the unlisted market too sees higher demand and consequent rise in premium of unlisted shares.

Further, as and when any company which has been traded in the unlisted space, later comes with an IPO and the IPO has been a success, it gives a boost to the unlisted market as well.

Citing an example of Tata Technologies, Manan said the stock traded in a wide range of Rs 90 - Rs 900 in the unlisted arena. However, post its IPO as the stock traded at Rs 1,200 there was a sudden spike in interest for other notable unlisted shares.

Buying and selling of unlisted shares?

You can buy and sell unlisted shares on various platforms, just like in normal market by matching the bid / ask price by the other party. 

However, do note, if you have bought unlisted shares and later the company plans to come with an IPO. Then you can either sell your shares prior to the IPO, else you will need to wait for six-month lock-in period post listing to sell the shares.

About NSE

NSE was incorporated in 1992 and recognised by the Securities and Exchange Board of India (SEBI) in 1993. In FY2023, NSE reported a net profit of Rs 7,501 crore on the back of Rs 12,650 crore revenue. 

Shareholding pattern as of March 2024, shows public shareholding at 56.2 per cent, which including insurance companies holding up to 6.81 per cent stake, foreign direct investments for up to 22.62 per cent and foreign portfolio investments of up to 2.2 per cent equity.

The non-promoter holdings, which comprises trading members and associates of trading members stood at 43.8 per cent.

NSE's IPO plan

NSE's IPO plans have hit regulatory hurdles more-than-once. Way back in December 2016, NSE had submitted preliminary documents to Sebi for its IPO, estimated to be around Rs 10,000 crore. Post which, the exchange had several discussions with the market regulator, Sebi, seeking its approval.

In December 2023, Sebi laid down key conditions for NSE, which includes glitch-free trading experience for at least one full year, and improved corporate governance structure among other issues for its IPO approval.

Peer comparison

Among the listed peers, shares of Bombay Stock Exchange quote ex-bonus-cum-split at Rs 2,810 per share. The stock has appreciated around 249 per cent when compared with the issue price of Rs 806 in the year 2017, excluding the bonus-cum-split adjustment. India's oldest stock exchange had declared a 2:1 bonus issue, and sub-divided its equity shares in the 1:10 ratio in March 2022.  

Meanwhile, the Multi Commodity Exchange (MCX) stock has gained 298% post its IPO in 2012. The stock now quotes at Rs 4,108 as against the issue price of Rs 1,032 per share in March 2012.