Cochin International Airport Limited
-4.4 % 1 MAbout Cochin International Airport Limited
A Comprehensive Overview of Price & Journey
Understanding Cochin International Airport Limited Inception and Growth
COCHIN INTERNATIONAL AIRPORT LIMITED UNLISTED SHARE PRICE
Cochin International Airport Limited is an unlisted company trading in the private market. Unlike listed companies, valuation and share price of unlisted or Pre-IPO companies is determined via negotiation and demand & supply Cochin International Airport Limited unlisted share.
Investors looking for diversification of their portfolio should carefully analyse _Cochin International Airport Limited unlisted share price, valuation and research report for the latest year. This is the comprehensive coverage of Cochin International Airport Limited unlisted share that answers simple questions of investors such as how to buy unlisted/ Pre-IPO shares of Cochin International Airport Limited, what are does Cochin International Airport Limited do and How has Cochin International Airport Limited performed in the recent years.
Overview
Cochin Airport was incorporated on 30 March 1994, an international airport serving the city of Kochi, in the state of Kerala, India. CIAL ownership is distinguished by a public-private partnership in which the Kerala Government holds more than a 32% stake.
It is the country's first airport in the world that is powered by solar energy. Various services and facilities are offered by CIAL to the customers, which include shopping malls, transportation, security services, accommodation, a centre for handling perishable cargo, maintenance and repair of aircraft, overhaul services, and more. It also works as a flight preparation organization to set forward preparing for cabin teams, pilots, engineers, and specialists for in-flight and ground back.
Cochin Airport is the busiest airport in Kerala, which is located 28 km north-east of downtown Kochi, the commercial capital of Kerala, and as of November 2023. It served almost more than 63% of Kerala’s air passengers in 2024.
Cochin International Airport Ltd. (CIAL) is not listed on the stock exchange, although it has a solid base of 19,000 investors from 28 nations. The state government owns approximately 34% of the shareholding in Cochin International Airport Ltd., and the company has returned a dividend of approximately 317% since 2003-04. The Cochin International Airport share price is a point of interest for many investors, although the private status of the company means that it has no share that is publicly traded.
Services Offered
Shopping arcade
Transportation
Security services
Accommodation
A centre for handling perishable cargo
Maintenance and repair of aircraft
Overhaul services
Parking & housing
Golf course & facilities
Terminal Details
-
Terminal 1 (Domestic): All domestic flights are serviced through this complex. The Domestic Terminal Complex has a floor area of around 6 lakh square feet, with a peak-hour passenger handling capacity of 2,000 incoming and 2,000 domestic outgoing passengers. It is fully equipped with modern passenger amenities to cater to domestic travelers to and from Cochin.
-
Terminal 2 (Business Jet Terminal): CIAL is the fourth airport in India equipped with a terminal dedicated to business jets. This terminal is tailored to offer customized services to charter and private jets, marking it as India’s premier Charter Gateway. Distinctively, this terminal seamlessly integrates tourism, international summits, business conferences, and the movement of high-net-worth individuals while also emphasizing cost-effectiveness in the development of an exquisite airport terminal.
-
Terminal 3 (International): The new international Terminal 3 welcomed travellers in March 2017. This terminal has 5 entry gates, 84 check-in counters, and 80 immigration counters. It is equipped with 10 escalators, 21 elevators, and 3 moving walkways. Additionally, the terminal features a solar carport facility capable of generating 2.7 MW of power and accommodating parking for 1,400 cars. Together with the solar carport at the domestic Terminal 1, it constitutes the largest solar carport in the world, with a combined capacity of 5.1 MW of power and parking for 2,800 cars.
Key Highlights
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It handles most of the International Passengers, which makes it India’s 3rd largest airport.
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CIAL has a portfolio of 163 ongoing projects, of which 9 are of utmost importance and are considered highly prestigious, aligning with its ambitious expansion plans.
-
The company was able to launch three mega projects: Kannur, the 4.5 MW run of the river project at Aripara, Kozhikode, the 12 MW Solar plant in Payyanur, and the exquisite Business Jet Terminal
-
Cochin International Airport Limited (CIAL) has surpassed one crore passengers in a calendar year for the first time, which is a significant milestone for it. Cochin is the only airport in Kerala and the fourth in South India to handle over one crore passengers annually, catering to 63.50% of the state’s air travellers.
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Around 105.2 lakh passengers were handled by CIAL, with 55.99 lakhs on domestic routes and 49.30 lakhs on international routes.
-
The company also owns an 18-hole golf course (CIAL Golf Club), a trade centre (CIAL Trade and Convention Centre), and two hangars.
-
As the middle-class population increases and they spend more on travelling which it is expected that the Indian domestic aviation market size is going to double by 2030, presenting business growth investment opportunities for investors.
-
The domestic air freight market is expected to touch 1.1 million tonnes from 0.8 million tonnes by 2025 at a CAGR of 7-9% per annum on the back of growing e-commerce & manufacturing sectors, increasing freight-carrying capacity of planes, and better aviation connectivity to smaller cities.
-
The company has consistently been paying dividends since 2003-04.
Right Issue
The Board of Directors of CIAL, in its meeting held on 14 February 2023, decided to offer 9,56,43,687 equity shares of INR 10 each for a premium of INR 40 per share (i.e., issue price INR 50 per share), totalling INR 478.22 crore to the existing shareholders of CIAL in the ratio of 1:4. The Record date fixed for the Right Issue was 22 February 2023. The Right Issue opened on 1 March 2023 and closed on 30 March 2023.
Revenue Model
The major earnings drivers of CIAL are from two sources:
Aero Revenue: It generates revenue from various sources like Landing fees, Income from cargo operations, Parking & housing fees, User Development fees, Aerobridge Charges, Passenger service fee, Income from cargo operations X-Ray screening charges, royalty income from subsidiaries, rent and services, and sale of duty-free products.
Non-Aero Revenue: Non-Aero Revenue generates revenue from CDRSL, Rent & Services, Other Royalty, Security Training Fees, Public Admission Fees, Income from trade fair centre, Income from golf course & facilities.
Cochin International Airport Limited (CIAL) subsidiary companies
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Cochin International Aviation Services Limited (CIASL)
-
Air Kerala International Services Limited (AKISL)
-
CIAL Infrastructures Limited (CIL)
-
CIAL Duty Free and Retail Services Limited (CDRSL)
Dividend Details
The CIAL recommends a dividend of 45% on the paid-up value of equity shares for FY24.
IPO Details
According to the management, Cochin International Airport Ltd. (CIAL) was expected to launch an IPO soon, but the exact release date had not yet been announced.
News
As part of this visionary pursuit, CIAL signed an agreement with Air works for operating MRO and commissioned its state-of-the-art Business Jet Terminal and has entered into an agreement with Air works for operating the MRO. CIAL is also expanding the international terminal, T3, with the addition of 8 more aerobridges. After the Installation of full-body scanners and DigiYatra facial recognition systems, it will reduce the time taken by security guards while checking. Cochin International Airport Limited (CIAL) is on its journey to elevate its aeronautical and non-aeronautical facilities to new heights.
From the non-aero side, CIAL has entered into a strategic agreement with the renowned Taj group to oversee the operation of its luxurious 112 key five-star hotel situated within the airport premises. This is expected to be commissioned in March 2024. Development of many new projects has been started by CIAL such as a Commercial Zone in front of the international terminal, Transit Accommodation, Golf Villas and sporting facilities, a City Hotel Project, etc.
Board of Directors
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Shri.Pinarayi Vijayan, Chief Minister of Kerala, Chairman
-
Shri. P. Rajeev, Director
-
Shri. K. Rajan, Director
-
Dr. V. Venu, Director
-
Shri. E. K. Bharat Bhushan, Director
-
Smt. Aruna Sundararajan, Director
-
Shri. M.A. Yusuff Ali, Director
-
Shri. N. V. George, Director
-
Shri. E. M. Babu, Director
-
Dr. P. Mohamad Ali, Director
-
Shri. S. Suhas IAS, Managing Director
Subsidiaries
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Cochin International Aviation Services Ltd.
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Air Kerala International Services Ltd.
-
CIAL Infrastrutures Ltd.
-
CIAL Dutyfree and Retail Services Ltd.
-
Kerala Waterways and Infrastructures Ltd.
Registered Address
The registered office of CIAL is located at Room No. 35, 4th Floor, GCDA Commercial Complex, Marine Drive, Cochin.
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COCHIN INTERNATIONAL AIRPORT LIMITED UNLISTED SHARE PRICE
Cochin International Airport Limited is an unlisted company trading in the private market. Unlike listed companies, valuation and share price of unlisted or Pre-IPO companies is determined via negotiation and demand & supply Cochin International Airport Limited unlisted share.
Investors looking for diversification of their portfolio should carefully analyse _Cochin International Airport Limited unlisted share price, valuation and research report for the latest year. This is the comprehensive coverage of Cochin International Airport Limited unlisted share that answers simple questions of investors such as how to buy unlisted/ Pre-IPO shares of Cochin International Airport Limited, what are does Cochin International Airport Limited do and How has Cochin International Airport Limited performed in the recent years.
Overview
Cochin Airport was incorporated on 30 March 1994, an international airport serving the city of Kochi, in the state of Kerala, India. CIAL ownership is distinguished by a public-private partnership in which the Kerala Government holds more than a 32% stake.
It is the country's first airport in the world that is powered by solar energy. Various services and facilities are offered by CIAL to the customers, which include shopping malls, transportation, security services, accommodation, a centre for handling perishable cargo, maintenance and repair of aircraft, overhaul services, and more. It also works as a flight preparation organization to set forward preparing for cabin teams, pilots, engineers, and specialists for in-flight and ground back.
Cochin Airport is the busiest airport in Kerala, which is located 28 km north-east of downtown Kochi, the commercial capital of Kerala, and as of November 2023. It served almost more than 63% of Kerala’s air passengers in 2024.
Cochin International Airport Ltd. (CIAL) is not listed on the stock exchange, although it has a solid base of 19,000 investors from 28 nations. The state government owns approximately 34% of the shareholding in Cochin International Airport Ltd., and the company has returned a dividend of approximately 317% since 2003-04. The Cochin International Airport share price is a point of interest for many investors, although the private status of the company means that it has no share that is publicly traded.
Services Offered
Shopping arcade
Transportation
Security services
Accommodation
A centre for handling perishable cargo
Maintenance and repair of aircraft
Overhaul services
Parking & housing
Golf course & facilities
Terminal Details
-
Terminal 1 (Domestic): All domestic flights are serviced through this complex. The Domestic Terminal Complex has a floor area of around 6 lakh square feet, with a peak-hour passenger handling capacity of 2,000 incoming and 2,000 domestic outgoing passengers. It is fully equipped with modern passenger amenities to cater to domestic travelers to and from Cochin.
-
Terminal 2 (Business Jet Terminal): CIAL is the fourth airport in India equipped with a terminal dedicated to business jets. This terminal is tailored to offer customized services to charter and private jets, marking it as India’s premier Charter Gateway. Distinctively, this terminal seamlessly integrates tourism, international summits, business conferences, and the movement of high-net-worth individuals while also emphasizing cost-effectiveness in the development of an exquisite airport terminal.
-
Terminal 3 (International): The new international Terminal 3 welcomed travellers in March 2017. This terminal has 5 entry gates, 84 check-in counters, and 80 immigration counters. It is equipped with 10 escalators, 21 elevators, and 3 moving walkways. Additionally, the terminal features a solar carport facility capable of generating 2.7 MW of power and accommodating parking for 1,400 cars. Together with the solar carport at the domestic Terminal 1, it constitutes the largest solar carport in the world, with a combined capacity of 5.1 MW of power and parking for 2,800 cars.
Key Highlights
-
It handles most of the International Passengers, which makes it India’s 3rd largest airport.
-
CIAL has a portfolio of 163 ongoing projects, of which 9 are of utmost importance and are considered highly prestigious, aligning with its ambitious expansion plans.
-
The company was able to launch three mega projects: Kannur, the 4.5 MW run of the river project at Aripara, Kozhikode, the 12 MW Solar plant in Payyanur, and the exquisite Business Jet Terminal
-
Cochin International Airport Limited (CIAL) has surpassed one crore passengers in a calendar year for the first time, which is a significant milestone for it. Cochin is the only airport in Kerala and the fourth in South India to handle over one crore passengers annually, catering to 63.50% of the state’s air travellers.
-
Around 105.2 lakh passengers were handled by CIAL, with 55.99 lakhs on domestic routes and 49.30 lakhs on international routes.
-
The company also owns an 18-hole golf course (CIAL Golf Club), a trade centre (CIAL Trade and Convention Centre), and two hangars.
-
As the middle-class population increases and they spend more on travelling which it is expected that the Indian domestic aviation market size is going to double by 2030, presenting business growth investment opportunities for investors.
-
The domestic air freight market is expected to touch 1.1 million tonnes from 0.8 million tonnes by 2025 at a CAGR of 7-9% per annum on the back of growing e-commerce & manufacturing sectors, increasing freight-carrying capacity of planes, and better aviation connectivity to smaller cities.
-
The company has consistently been paying dividends since 2003-04.
Right Issue
The Board of Directors of CIAL, in its meeting held on 14 February 2023, decided to offer 9,56,43,687 equity shares of INR 10 each for a premium of INR 40 per share (i.e., issue price INR 50 per share), totalling INR 478.22 crore to the existing shareholders of CIAL in the ratio of 1:4. The Record date fixed for the Right Issue was 22 February 2023. The Right Issue opened on 1 March 2023 and closed on 30 March 2023.
Revenue Model
The major earnings drivers of CIAL are from two sources:
Aero Revenue: It generates revenue from various sources like Landing fees, Income from cargo operations, Parking & housing fees, User Development fees, Aerobridge Charges, Passenger service fee, Income from cargo operations X-Ray screening charges, royalty income from subsidiaries, rent and services, and sale of duty-free products.
Non-Aero Revenue: Non-Aero Revenue generates revenue from CDRSL, Rent & Services, Other Royalty, Security Training Fees, Public Admission Fees, Income from trade fair centre, Income from golf course & facilities.
Cochin International Airport Limited (CIAL) subsidiary companies
-
Cochin International Aviation Services Limited (CIASL)
-
Air Kerala International Services Limited (AKISL)
-
CIAL Infrastructures Limited (CIL)
-
CIAL Duty Free and Retail Services Limited (CDRSL)
Dividend Details
The CIAL recommends a dividend of 45% on the paid-up value of equity shares for FY24.
IPO Details
According to the management, Cochin International Airport Ltd. (CIAL) was expected to launch an IPO soon, but the exact release date had not yet been announced.
News
As part of this visionary pursuit, CIAL signed an agreement with Air works for operating MRO and commissioned its state-of-the-art Business Jet Terminal and has entered into an agreement with Air works for operating the MRO. CIAL is also expanding the international terminal, T3, with the addition of 8 more aerobridges. After the Installation of full-body scanners and DigiYatra facial recognition systems, it will reduce the time taken by security guards while checking. Cochin International Airport Limited (CIAL) is on its journey to elevate its aeronautical and non-aeronautical facilities to new heights.
From the non-aero side, CIAL has entered into a strategic agreement with the renowned Taj group to oversee the operation of its luxurious 112 key five-star hotel situated within the airport premises. This is expected to be commissioned in March 2024. Development of many new projects has been started by CIAL such as a Commercial Zone in front of the international terminal, Transit Accommodation, Golf Villas and sporting facilities, a City Hotel Project, etc.
Board of Directors
-
Shri.Pinarayi Vijayan, Chief Minister of Kerala, Chairman
-
Shri. P. Rajeev, Director
-
Shri. K. Rajan, Director
-
Dr. V. Venu, Director
-
Shri. E. K. Bharat Bhushan, Director
-
Smt. Aruna Sundararajan, Director
-
Shri. M.A. Yusuff Ali, Director
-
Shri. N. V. George, Director
-
Shri. E. M. Babu, Director
-
Dr. P. Mohamad Ali, Director
-
Shri. S. Suhas IAS, Managing Director
Subsidiaries
-
Cochin International Aviation Services Ltd.
-
Air Kerala International Services Ltd.
-
CIAL Infrastrutures Ltd.
-
CIAL Dutyfree and Retail Services Ltd.
-
Kerala Waterways and Infrastructures Ltd.
Registered Address
The registered office of CIAL is located at Room No. 35, 4th Floor, GCDA Commercial Complex, Marine Drive, Cochin.
About Cochin International Airport Limited
IPO Details, Price movement
Performance Highlights of Financials 2023-24
-
Revenue from operation increased by around 23.3% from INR 9393.6 crore in FY23 to INR 1158.4 crore in FY24.
-
Profit After Tax increased by 52.94% from INR 292.75 crore in FY23 to INR 447.75 crore in FY24.
-
The CIAL is showing tremendous growth as the financials of the company increased heavily if we compared it with the previous year.
-
EPS increased by 25.75% from Rs 7.57 in FY23 to Rs 9.52 in FY24.
Aviation Industry
Currently, India’s aviation sector is experiencing remarkable growth and evolution, highlighted by extensive fleet expansions and strategic alliances. IndiGo, the country’s largest airline, has made history by placing an unprecedented order for 500 Airbus aircraft, the biggest single order ever in aviation. This extensive expansion will help the company to increase its capacity to meet the escalating demand for air travel in India. Similarly, Akasa Air is optimistic about the future of Indian aviation by ordering 150 Boeing 737 MAX aircraft.
Air India, now under the Tata Group, focuses on its international reach with new routes and upgraded services. The airline has introduced new non-stop flights between Delhi and Kuala Lumpur, further enhancing 13 Cochin International Airport Limited its global network. Through new partnerships, Air India is enhancing its operational capabilities, such as Lufthansa Technik’s contract to maintain Air India’s Boeing 777 fleet.
India’s aviation infrastructure is also seeing substantial upgrades. To grow air traffic, ensure efficient and safe operations across the country, these developments are essential. However, the industry does face challenges, including financial disputes and regulatory scrutiny. Through strategic expansions and infrastructure enhancements, The Industry overcomes all these challenges.
Fundamentals
Financials
All values are INR Cr except per share value
| P&L Statement | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Revenue | 267.59 | 502.30 | 939.63 | 1158.43 |
| Other Income | 29.06 | 21.90 | 15.19 | 75.08 |
| Gross Profit | 296.65 | 524.20 | 954.83 | 1233.51 |
| Total Expense | 222.49 | 275.33 | 376.63 | 435.82 |
| EBIDTA | 74.16 | 248.87 | 578.20 | 797.69 |
| D&A | 141.07 | 145.37 | 141.68 | 148.37 |
| EBIT | -66.91 | 103.50 | 436.52 | 649.31 |
| Interest Expense | 56.12 | 54.94 | 44.84 | 50.83 |
| PBT | -123.03 | 48.56 | 391.69 | 598.51 |
| TAX | -30.16 | 13.57 | 98.94 | 150.71 |
| PAT | -92.87 | 34.99 | 292.74 | 447.80 |
| Diluted EPS | -2.37 | 0.83 | 7.59 | 9.52 |
| Basic EPS | -2.37 | 0.83 | 7.59 | 9.52 |
| Total income | 296.65 | 524.20 | 954.82 | 1,233.51 |
ASSETS
| CURRENT ASSETS | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Cash and Cash Equivalents | 13.00 | 14.00 | 46.00 | 462.00 |
| Trade Payables | 55.00 | 93.00 | 101.00 | 116.00 |
| Inventory | 16.00 | 22.00 | 55.00 | 47.00 |
| Other Current Assets | 127.40 | 118.70 | 959.20 | 668.10 |
| Total Current Assets | 211.40 | 247.70 | 1,161.20 | 1,293.10 |
| NON CURRENT ASSETS | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Plant Property and Equipment | 2280.00 | 2221.00 | 2188.00 | 2254.00 |
| Long Term Investment | 1.00 | 10.00 | 10.00 | 10.00 |
| Other Non Current Assets | 33.00 | 34.00 | 72.00 | 16.00 |
| Total Non Current Assets | 2,314.00 | 2,265.00 | 2,270.00 | 2,280.00 |
| Total Assets | 2,525.40 | 2,512.70 | 3,431.20 | 3,573.10 |
|---|
| CURRENT LIABILITES | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Other Current Liab | 323.00 | 234.60 | 403.80 | 358.30 |
| NON CURRENTLIABILITIES | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Long Term Debt | 562.00 | 612.00 | 560.00 | 454.00 |
| Deffered Tax Liab | 46.00 | 57.00 | 106.00 | 104.00 |
| Other Non Current Liab | 279.80 | 262.00 | 245.40 | 289.90 |
LIABILITIES
| EQUITY | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Share Capital | 383.00 | 383.00 | 383.00 | 478.00 |
| Other Equity | 932.00 | 964.00 | 1733.00 | 1889.00 |
| Total Equity | 1,315.00 | 1,347.00 | 2,116.00 | 2,367.00 |
| Total Liabilities & Equity | 1,315.00 | 1,347.00 | 2,116.00 | 2,367.00 |
|---|
| CASH FLOW STAT | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Cash Flow from operating | 29.23 | 158.80 | 559.82 | 592.43 |
| Cash Flow from financing | -130.23 | -1.24 | 434.29 | -394.49 |
| Cash Flow from investing | -163.26 | -110.73 | -972.49 | 229.11 |
| Net cash flow | -264.26 | 46.83 | 21.62 | 427.05 |
Revenue Growth
PAT Growth %
EPS Growth %
TOTAL ASSETS Growth %
QUICK RATIO Growth %
LONG TERM DEBT TO EQUITY RATIO Growth %
Shareholding Pattern
2026
| Name | Designation | Share % |
|---|---|---|
| His Excellency ,The Governor Of Kerela | NA | 33.38% |
| Mr. Yusuffali M | NA | 12.11% |
| Mr. N V George | NA | 5.94% |
| Others | NA | 48.57% |
Events
| Name | Date | Details |
|---|---|---|
| No events available. | ||
Frequently Asked Questions
Like any other financial product or commodity, the price of unlisted shares is discovered at the intersection of demand from buyers and supply from sellers of particular unlisted shares.
The two determinants of price are dynamic factors and keep changing constantly, hence share price tends to fluctuate constantly – every day, every minute.
Upon successful completion of a deal, the unlisted shares are credited electronically directly to your standard demat account that is usually created with CDSL or NSDL (Central Depository Services Limited or National Securities Depository Limited).
The lock-in period of Purple Style Labs Limited varies depending on the category of the investor:
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Venture capital or foreign venture capital investors are subject to lock-in period of 6 months from the date of acquisition of shares
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For AIF investors of Category-II are not subject to any lock-in.
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Any other investor, including retail investors, HNI or corporate investors are subject to a lock-in period of 6 months from the date of listing.
Note – The above-mentioned lock-in is for mainboard, however for SME IPO the applicable lock-in period is 1 Year.
There is no regulatory minimum limit to invest in unlisted shares. However, minimum investment size varies with the per share price. Earlier, the typical investment size often ranges between 70K – 100K, but with the growing awareness and increased participation the investment size has been down sized to 50k.
Short-Term Capital Gain tax is applicable when you sell your unlisted shares within a year from date of acquisition. Realized gain is taxable at your slab rate after consolidating in total income for the year. Hence, the rate of tax depends on your overall income for the particular financial year.
Long-Term Capital Gain taxes are applicable when you sell your unlisted shares after two years from the date of acquisition. LTCG tax is calculated on profits realized on sale of unlisted shares at 12.5%. Investors particularly retail or HNI must understand the concept clearly as it impacts strategy and tax planning.
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You can download the NSDL or CDSL application and login into the account and check whether the shares have been credited or not.
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Credit of Unlisted Shares/Pre-IPO shares can be checked in brokers application as well but it takes T+2 days to show the shares.
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You would also get email confirmation of credit of shares via email
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The value of share in unlisted space is determined in the same way as it is done in the listed market. Demand and supply decide the price of any share. If the demand is more than the supply, then the price of the share increases and vice versa.
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When a new share is introduced in the unlisted space, the value of the company is decided upon the last funding raised by the company. If the company hasn’t raised any funding in the past, then the valuation is decided upon the fundamentals of the company.
Yes, investing in unlisted shares is legal in India, the activity is regulated and governed under the rules and guidelines laid by SEBI (Securities and Exchange Board of India). Related parties must comply with the regulations and guidelines to ensure legal and financial standards.
Investing in unlisted shares in India carries a significant and distinctive risk profile such as limited liquidity, lack of transparent pricing and regulatory oversight because unlisted shares do not trade on listed stock exchange, they are bought or sold in OTC (over the counter) market that makes vulnerable to following risks:
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Liquidity risk, unlisted shares are difficult to buy and sell,
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Lack of transparent pricing, as share price of pre-IPO or unl;isted company is often determined by narrative not fundamentals
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Lack of information disclosure, unlisted companies are not mandated for disclosures like listed companies
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Tax ambiguity, because determination of fair market value and cost of acquisition of unlisted shares is often disputed
Hence, investors should carefully examine related facts before investing in Pre-IPO or unlisted shares.