6 Risks of Investing in Unlisted IPOs: Nithin Kamath

Jun 27, 2025 Shaurya Agarwal

IPO Price

Even if an unlisted company IPOs, its price can be below what you paid. Example: HDB Financial’s IPO was 40% below its last unlisted price. Source: canva

No Regulatory Protection

These trades happen outside SEBI’s regulatory framework. If things go wrong, investors have no legal recourse or protection Source: canva

Inflated Markups & Commissions

Listed on third-party websites, they often add huge markups, making it easy to overpay for shares. Source: canva

The traditional metric for financial inclusion, owning a bank account, is grossly inadequate when viewed through the lens of the disabled and elderly.

Unlisted companies disclose far less financial and business information, making it tough to judge risks or performance Source: canva

Opaque Pricing

Unlisted shares are traded on opaque platforms—prices can vary wildly, and there’s no standard mechanism to know the real value Source: canva

Liquidity Trap

Companies can go a long time without an IPO like NSE, which means you can get stuck without liquidity. Source: canva

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