Vikram Solar
-2.3 % 1 MAbout Vikram Solar
A Comprehensive Overview of Price & Journey
Understanding Vikram Solar Inception and Growth
Overview
Vikram Solar Limited was established in 2006. The company specializes in solar energy solutions, including manufacturing solar photovoltaic (PV) modules, engineering, procurement, and construction (EPC) services, and operations and maintenance (O&M) services. It is now the largest domestic PV module manufacturer and integrated solar energy solutions provider. Vikram Solar share price trends are keenly tracked by investors, indicating the company's performance in the market.
The company has a strong global presence on six continents and is actively contributing to the development of the solar revolution. It produces high-efficiency monocrystalline and polycrystalline silicon photovoltaic modules. Vikram Solar's IPO information has attracted industry attention in the renewable energy market as the company keeps growing.
The Company was established to support India's ambitions in the field of renewable energy. Vikram Solar toiled for the creation of a more resilient and sustainable planet for future generations even before the country became vocal for local manufacturing. Investors looking at Vikram Solar's unlisted share price track its market potential before its public listing.
Vikram Solar Limited has a manufacturing facility in Falta Special Economic Zone (FSEZ) in West Bengal with an installed capacity of 1.2 GW solar PV modules. It has recently set up another manufacturing plant in Chennai with 1 GW of capacity. The company operates and sells power from a 10-MW solar power plant, which has a long-term power purchase agreement with the Tirupati temple. Those tracking the Vikram Solar share price NSE and the Vikram Solar share price BSE keep a keen eye on the company’s financial performance and growth trajectory.
Vision
To become one of the most valuable solar companies delivering benchmark sustainable energy solutions worldwide.
Mission
Deliver reliable solar solutions through world-class technology and innovation.
Vikram Solar's Journey
2006: Incorporation Vikram Solar begins its journey towards revolutionizing India’s solar energy landscape.
2011: Early Milestone Installed a 3 MW project under the National Solar Mission of India.
2013: Landmark Achievement Contributed to the solarisation of the first fully solarised airport in India – Cochin International Airport, Kerala.
2014: Recognition and Innovation Ranked as India’s only Tier 1 module manufacturer and commissioned India’s first floating solar plant
2015: Scaling Production Reached a production capacity of 500 MW/year, ticking the substantial growth and commitment promise
2017: Industry Leadership Achieved a significant milestone by reaching a production capacity of 1 GW/year and giving the statement about its position as a leader in the Indian solar industry.
2019: Expansion and Impact Commissioned a 200 MW plant in Andhra Pradesh and East India’s largest single shed rooftop project, totalling 2.15 MW, contributing to both utility-scale and distributed solar energy generation.
2021: Scaling New Heights Reached a production capacity of 2.5 GW, firmly establishing itself as one of India’s largest solar module manufacturers, driving the nation’s transition towards clean and sustainable energy sources.
2022: Recognised as the Top Performer in the PVEL PV Reliability Scorecard — the only Indian manufacturer to receive the honour for advanced technology in half-cut cell multi-busbar solar modules. Bagged a single 350 MW module supply order from the US
2023: The company reached manufacturing capacity to 3.5 GW per year
2024:
-
Secured a strategic 250 MW module supply deal with Gujarat Industries Power Company Limited.
-
Secured a 397.7 MW module supply contract for NTPC’s Gujarat Solar Project,
-
Got 3.5 GW module production capacity listed in Bloomberg NEF Tier-1 global accreditation (Q4 FY 2023-24),
-
Launched new TOPCon and heterojunction (HJT) PV modules
Customers of Vikram Solar
The company has served clients like NTPC, WBSDCL, GIPCL, BEL, BHEL, ISRO, IOCL, SBI, APGENCO, IMFA, Century Ply, KBL, Maruti Suzuki Klima, etc.
Manufacturing Units
Operational
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Falta SEZ, Kolkata West Bengal: Manufacturing facility of 2.2GW.
-
Oragadam, Chennai, Tamil Nadu: Our manufacturing facility is located in Kancheepuram, with a capacity of 1.3GW, this facility aims to tap into the escalating demand within the solar energy sector, enhancing our dedication to sustainable progress.
Upcoming
Gangaikonda, Tamil Nadu: The Company’s upcoming 3 GW cell and 6 GW module manufacturing facility in Gangaikonda, Tamil Nadu, is set to significantly ramp up its capacity.
Manufacturing facility in the USA: The Company’s solar PV manufacturing facility in the USA is currently in the site selection stage. With this new manufacturing facility, it aims to leverage the increasing demand for renewable energy within the United States.
Board of Directors
Mr. Gyanesh Chaudhary, Chairman & Managing Director
Mr. Vikram Swarup, Independent Director
Ms. Ratnabali Kakkar, Independent Director
Mr. Subramanya Krishnappa, Independent Director
Mr. Ivan Saha, Whole Time Director & CEO
Mr. Krishna Kumar Maskara, Whole Time Director
Ms. Neha Agrawal, Whole Time Director
Products
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Hypersol: Hypersol is an n-type TOPCon Bifacial, M10, and G12 module, which is generally preferred for utility-scale projects with power output ranging from 415 to 715 Wp.
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Paradea: Paradea is a Bifacial glass-glass multi busbar module, which is generally preferred for utility scale projects with power output ranging from 395 to 680 Wp.
-
Somera: These modules are preferred across all solar segment projects having land constraints, and It is Monofacial multi-busbar PV modules with power output ranging from 395 to 680 Wp.
-
Prexos: Prexos is a PERC Bifacial Half Cut Cell and Glass-to-Transparent Back Sheet module, which is preferred for rooftop projects with different roofing materials with power output ranging from 395 to 565 Wp.
Dividend Details
No dividend was declared by the company for the year 2023-24.
IPO Details
In October 2024, Vikram Solar filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for fund raising for a fresh issue of ₹1500 crore and Offer for Sale (OFS) up to 17.45 million shares by the promoter group. The face value of each equity share in the IPO is ₹10
Business Model
Solar PV Module Manufacturing: Vikram Solar manufactures high-efficiency solar modules using both monocrystalline and polycrystalline cell technology. Their products can be categorized based on the use of solar cell technology and cell size.
Solar EPC and Rooftop Solutions: Vikram Solar stands as one of India’s top five Engineering, Procurement, and Construction (EPC) players, leveraging over a decade of experience and a robust portfolio comprising more than 300 projects as of March 31, 2024. The company’s proficiency in executing EPC projects for solar plants is widely acknowledged, cementing its prominent position within the industry.
Operation and Maintenance Services: Over the years, Vikram Solar has established a sustainable O&M business division to provide customers with forward-integrated, full life cycle services. Its O&M services include repairs, ongoing maintenance, and complete operational solutions. These services are primarily offered for executed EPC projects as bundled value-add services. Vikram Solar provides these services across India and to clients in industries such as railways, airports, hospitals, defence, and automobiles.
Revenue Mix
-
Around 97.34% of the revenue comes from PV modules, and the remaining 2.66% comes from EPC.
-
The company earns 38.42% from domestic sales and 61.58% from international sales.
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Overview
Vikram Solar Limited was established in 2006. The company specializes in solar energy solutions, including manufacturing solar photovoltaic (PV) modules, engineering, procurement, and construction (EPC) services, and operations and maintenance (O&M) services. It is now the largest domestic PV module manufacturer and integrated solar energy solutions provider. Vikram Solar share price trends are keenly tracked by investors, indicating the company's performance in the market.
The company has a strong global presence on six continents and is actively contributing to the development of the solar revolution. It produces high-efficiency monocrystalline and polycrystalline silicon photovoltaic modules. Vikram Solar's IPO information has attracted industry attention in the renewable energy market as the company keeps growing.
The Company was established to support India's ambitions in the field of renewable energy. Vikram Solar toiled for the creation of a more resilient and sustainable planet for future generations even before the country became vocal for local manufacturing. Investors looking at Vikram Solar's unlisted share price track its market potential before its public listing.
Vikram Solar Limited has a manufacturing facility in Falta Special Economic Zone (FSEZ) in West Bengal with an installed capacity of 1.2 GW solar PV modules. It has recently set up another manufacturing plant in Chennai with 1 GW of capacity. The company operates and sells power from a 10-MW solar power plant, which has a long-term power purchase agreement with the Tirupati temple. Those tracking the Vikram Solar share price NSE and the Vikram Solar share price BSE keep a keen eye on the company’s financial performance and growth trajectory.
Vision
To become one of the most valuable solar companies delivering benchmark sustainable energy solutions worldwide.
Mission
Deliver reliable solar solutions through world-class technology and innovation.
Vikram Solar's Journey
2006: Incorporation Vikram Solar begins its journey towards revolutionizing India’s solar energy landscape.
2011: Early Milestone Installed a 3 MW project under the National Solar Mission of India.
2013: Landmark Achievement Contributed to the solarisation of the first fully solarised airport in India – Cochin International Airport, Kerala.
2014: Recognition and Innovation Ranked as India’s only Tier 1 module manufacturer and commissioned India’s first floating solar plant
2015: Scaling Production Reached a production capacity of 500 MW/year, ticking the substantial growth and commitment promise
2017: Industry Leadership Achieved a significant milestone by reaching a production capacity of 1 GW/year and giving the statement about its position as a leader in the Indian solar industry.
2019: Expansion and Impact Commissioned a 200 MW plant in Andhra Pradesh and East India’s largest single shed rooftop project, totalling 2.15 MW, contributing to both utility-scale and distributed solar energy generation.
2021: Scaling New Heights Reached a production capacity of 2.5 GW, firmly establishing itself as one of India’s largest solar module manufacturers, driving the nation’s transition towards clean and sustainable energy sources.
2022: Recognised as the Top Performer in the PVEL PV Reliability Scorecard — the only Indian manufacturer to receive the honour for advanced technology in half-cut cell multi-busbar solar modules. Bagged a single 350 MW module supply order from the US
2023: The company reached manufacturing capacity to 3.5 GW per year
2024:
-
Secured a strategic 250 MW module supply deal with Gujarat Industries Power Company Limited.
-
Secured a 397.7 MW module supply contract for NTPC’s Gujarat Solar Project,
-
Got 3.5 GW module production capacity listed in Bloomberg NEF Tier-1 global accreditation (Q4 FY 2023-24),
-
Launched new TOPCon and heterojunction (HJT) PV modules
Customers of Vikram Solar
The company has served clients like NTPC, WBSDCL, GIPCL, BEL, BHEL, ISRO, IOCL, SBI, APGENCO, IMFA, Century Ply, KBL, Maruti Suzuki Klima, etc.
Manufacturing Units
Operational
-
Falta SEZ, Kolkata West Bengal: Manufacturing facility of 2.2GW.
-
Oragadam, Chennai, Tamil Nadu: Our manufacturing facility is located in Kancheepuram, with a capacity of 1.3GW, this facility aims to tap into the escalating demand within the solar energy sector, enhancing our dedication to sustainable progress.
Upcoming
Gangaikonda, Tamil Nadu: The Company’s upcoming 3 GW cell and 6 GW module manufacturing facility in Gangaikonda, Tamil Nadu, is set to significantly ramp up its capacity.
Manufacturing facility in the USA: The Company’s solar PV manufacturing facility in the USA is currently in the site selection stage. With this new manufacturing facility, it aims to leverage the increasing demand for renewable energy within the United States.
Board of Directors
Mr. Gyanesh Chaudhary, Chairman & Managing Director
Mr. Vikram Swarup, Independent Director
Ms. Ratnabali Kakkar, Independent Director
Mr. Subramanya Krishnappa, Independent Director
Mr. Ivan Saha, Whole Time Director & CEO
Mr. Krishna Kumar Maskara, Whole Time Director
Ms. Neha Agrawal, Whole Time Director
Products
-
Hypersol: Hypersol is an n-type TOPCon Bifacial, M10, and G12 module, which is generally preferred for utility-scale projects with power output ranging from 415 to 715 Wp.
-
Paradea: Paradea is a Bifacial glass-glass multi busbar module, which is generally preferred for utility scale projects with power output ranging from 395 to 680 Wp.
-
Somera: These modules are preferred across all solar segment projects having land constraints, and It is Monofacial multi-busbar PV modules with power output ranging from 395 to 680 Wp.
-
Prexos: Prexos is a PERC Bifacial Half Cut Cell and Glass-to-Transparent Back Sheet module, which is preferred for rooftop projects with different roofing materials with power output ranging from 395 to 565 Wp.
Dividend Details
No dividend was declared by the company for the year 2023-24.
IPO Details
In October 2024, Vikram Solar filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for fund raising for a fresh issue of ₹1500 crore and Offer for Sale (OFS) up to 17.45 million shares by the promoter group. The face value of each equity share in the IPO is ₹10
Business Model
Solar PV Module Manufacturing: Vikram Solar manufactures high-efficiency solar modules using both monocrystalline and polycrystalline cell technology. Their products can be categorized based on the use of solar cell technology and cell size.
Solar EPC and Rooftop Solutions: Vikram Solar stands as one of India’s top five Engineering, Procurement, and Construction (EPC) players, leveraging over a decade of experience and a robust portfolio comprising more than 300 projects as of March 31, 2024. The company’s proficiency in executing EPC projects for solar plants is widely acknowledged, cementing its prominent position within the industry.
Operation and Maintenance Services: Over the years, Vikram Solar has established a sustainable O&M business division to provide customers with forward-integrated, full life cycle services. Its O&M services include repairs, ongoing maintenance, and complete operational solutions. These services are primarily offered for executed EPC projects as bundled value-add services. Vikram Solar provides these services across India and to clients in industries such as railways, airports, hospitals, defence, and automobiles.
Revenue Mix
-
Around 97.34% of the revenue comes from PV modules, and the remaining 2.66% comes from EPC.
-
The company earns 38.42% from domestic sales and 61.58% from international sales.
About Vikram Solar
IPO Details, Price movement
Vikram Solar Projects
India
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225 MW – bilhaur, Uttar Pradesh (2021)
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200 MW – Anatapuramu, Andhra Pradesh (2018)
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20MW – Ayodhya, Uttar Pradesh (2019)
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10 MW – Itrasi, Madhya Pradesh (2018)
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10 MW – Dahej Port, Gandhar, Hazira (2018)
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1461 kW Rooftop – Gujarat (2018)
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350 kW Rooftop – Cossipore (2018)
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100 kW Rooftop – Haryana (2018)
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130 MW – Rajasthan (2017)
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80 MW – Charanka, Gujarat (2017)
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20 MW – Karnataka (2017)
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10 MW – Tirupati, Andhra Pradesh (2017)
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100 kW Rooftop – Patna (2017)
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10 kW Floating Solar Plant – Kolkata (2015)
Abroad
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Vikram Solar supplied 4.3 MW of Modules for a solar farm in Ware, Massachusetts, United States.
-
Vikram Solar Supplied 52.6 MW of Modules to Southern Current, United States.
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4.2 MW project commissioned in the US with Vikram Solar modules.
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A 312 kWp solar system was installed by Finnwind Oy with Vikram Solar modules at Helsinki-Vantaa Airport
Registered Office
The registered office of Vikram Solar Limited is in Kolkata, West Bengal, India
Competitors
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Waaree Energies Limited
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Tata Power Solar
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ACME Solar
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Adani Solar
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Solar Planet
-
Decon Solar Solutions
Key Highlights
-
The company increased its manufacturing capacity to 3.5 GW in FY 2023-24, targeting 4.5 GW by FY 2024-25 and 10.5 GW by FY 2025-26.
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They are eligible for key subsidies, including PLI for our 2.4 GW solar facility and TNGO, bolstering our growth and innovation prospects.
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The company is present across all segments, like utility-scale projects, C&I, residential, ground mount, rooftop, and floating solar projects.
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The total number of modules manufactured in FY 2023-24 is 16,11,104.
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3.5 GW FY 2023-24 Cumulative Manufacturing Capacity
-
715 WP FY 2023-24 Module Rated Power
Performance Highlights
-
Revenue from operations increased by 21.11% to 25,109.90 million in FY24.
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EBITDA showed a 114.08% increase by reaching 3,985.79 million in FY24.
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Profit After Tax (PAT) increased by 450.1% to 797.18 million in FY24.
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The company has recorded a total income of 25,239.62 million during the financial year 2023-24 compared to 20,919.11 million in the corresponding previous financial year.
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The revenue from sales of goods for the FY 2023-24 was Rs. 24,572.86 million in comparison to the previous year, FY 2022-2,3, in which the revenue from sales of goods was Rs. 19,457.86 million.
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The Company has achieved robust revenue growth, with total revenue amounting to 25,109.90 million, reflecting a 21.11 % increase compared to the preceding fiscal year.
Indian Renewable Energy Sector
The Indian renewable energy market reached US$ 22.0 billion in CY 2023 and is further projected to hit US$ 46.7 billion by CY 2032, showing a CAGR of 8.71%. This growth is primarily driven by rapid technological advancements in renewable energy technologies, rising concerns about climate change and the impacts of fossil fuels, and increasing demand for clean energy solutions.
India ranks fourth in renewable energy installed capacity globally. Over the last eight years, the country has developed around more than 4x of renewable energy capacity.
In FY 2023-24, India witnessed significant growth in renewable energy installations. During this period, approximately 15,033 MW of solar capacity and 3,253 MW of wind capacity were added, indicating significant increases of 17.6% and 42.9%, respectively, compared to the previous year.
As of March 2024, India’s latest renewable energy installed capacity reached 190.6 GW, reflecting the country’s ongoing commitment to advancing its renewable energy sector.
It stands as one of India’s largest solar energy solution providers with a substantial production capacity of solar photovoltaic modules. Harnessing these capabilities, the company is committed to solidifying its position as a key player in the solar energy sector.
Global Renewable Capacity Projections
In 2024, wind and solar PV together are expected to generate more electricity than hydropower
In 2025, renewables are poised to surpass coal to become the largest source of electricity generation
In 2026, both wind and solar PV individually is expected to exceed nuclear electricity generation
In 2028, renewable energy sources will account for over 42% of global electricity generation, with the share of wind and solar PV doubling to 25%
Fundamentals
Financials
All values are INR Cr except per share value
| P&L Statement | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Revenue | 1610.00 | 1730.00 | 2073.00 | 2511.00 |
| Other Income | 17.00 | 13.00 | 19.00 | 13.00 |
| COGS | 1216.30 | 1395.50 | 1717.40 | 1676.00 |
| Gross Profit | 411.30 | 347.60 | 374.60 | 847.90 |
| Total Expense | 216.80 | 276.20 | 169.70 | 436.40 |
| EBIDTA | 194.50 | 71.40 | 204.90 | 411.60 |
| D&A | 38.80 | 48.00 | 63.90 | 138.10 |
| EBIT | 155.70 | 23.40 | 140.90 | 273.50 |
| Interest Expense | 99.50 | 102.90 | 122.00 | 154.60 |
| PBT | 56.20 | -79.40 | 18.90 | 107.20 |
| TAX | 18.00 | -16.50 | 4.40 | 27.50 |
| PAT | 38.20 | -62.90 | 14.50 | 79.70 |
| Diluted EPS | 1.48 | -2.43 | 0.56 | 3.08 |
| Basic EPS | 1.48 | -2.43 | 0.56 | 3.08 |
| Total income | 1,627.00 | 1,743.00 | 2,092.00 | 2,524.00 |
ASSETS
| CURRENT ASSETS | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Cash and Cash Equivalents | 8.59 | 18.87 | 1.63 | 9.00 |
| Trade Payables | 736.00 | 917.00 | 959.00 | 1185.00 |
| Inventory | 193.00 | 265.00 | 373.00 | 393.00 |
| Other Current Assets | 327.90 | 418.30 | 418.90 | 391.30 |
| Total Current Assets | 1,265.49 | 1,619.17 | 1,752.53 | 1,978.30 |
| NON CURRENT ASSETS | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Plant Property and Equipment | 433.35 | 533.89 | 650.26 | 526.58 |
| Other Non Current Assets | 99.00 | 84.00 | 73.00 | 80.64 |
| Total Non Current Assets | 532.35 | 617.89 | 723.26 | 607.22 |
| Total Assets | 1,797.84 | 2,237.06 | 2,475.79 | 2,585.52 |
|---|
| CURRENT LIABILITES | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Other Current Liab | 1050.00 | 1482.30 | 1296.20 | 1422.30 |
| NON CURRENTLIABILITIES | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Long Term Debt | 230.00 | 264.00 | 214.00 | 199.00 |
| Deffered Tax Liab | 18.00 | - | - | 8.00 |
| Other Non Current Liab | 85.60 | 139.60 | 600.90 | 510.80 |
LIABILITIES
| EQUITY | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Share Capital | 24.00 | 259.00 | 259.00 | 259.00 |
| Other Equity | 391.00 | 92.00 | 106.00 | 187.00 |
| Total Equity | 415.00 | 351.00 | 365.00 | 446.00 |
| Total Liabilities & Equity | 415.00 | 351.00 | 365.00 | 446.00 |
|---|
| CASH FLOW STAT | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| Cash Flow from operating | 13.00 | 201.00 | 195.00 | 152.00 |
| Cash Flow from financing | 4.00 | -36.00 | -102.00 | -81.00 |
| Cash Flow from investing | -40.00 | -155.00 | -111.00 | -64.00 |
| Net cash flow | -23.00 | 10.00 | -18.00 | 7.00 |
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 % |
|---|---|---|
| Vikram Capital Management Private Limited | NA | 42.93% |
| Hari Krishna Chaudhary Family Trust | NA | 28.20% |
| Hari Krishna Chaudhary | NA | 5.31% |
| Gyanesh Chaudhary | Chairman & MD | 5.02% |
| Vikram Financial Services Limited | NA | 5.83% |
| Others | NA | 12.71% |
Events
Promoters or Management
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.