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All About Pre-IPO investments

Pre-IPO (Initial Public Offering) investment refers to investing in a company before it goes public and lists its shares on a stock exchange. This type of investment provides an opportunity for investors to buy shares in a company while it is still privately held and has not yet offered its shares to the general public.<br><br>In this post, we bring you all-around information on Pre-IPO shares and how to start investing with Altius Investech. Also, head on to the blog below to know more about Pre-IPO shares.<br><br>Link to the blog post-https://altiusinvestech.com/blog/what-is-ipo-and-how-does-it-work/

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All About Pre-IPO investments

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  1. All About Pre-IPO Investment

  2. Introduction to Pre-IPO Investments Criteria to shortlisting Pre IPO Cos Taxation Risk & Reward Our Past Performance Companies to invest in Pre-IPO space Companies to not invest in Pre- IPO space

  3. What are Pre-IPO companies Companies that are not yet listed on the Stock Exchanges like BSE, NSE, MSEI. But are generally in various stages of getting listed. Why invest in Pre IPO equities Early Access Get access to investment opportunities before the broader market does Diversification Benefits Diversification and lower correlation to listed companies Greater value Creation in the Pre-IPO Space As companies are staying private longer than ever most of the value creation happens in the Pre-IPO space

  4. How to shortlist PRE IPO Investments ? How to shortlist PRE IPO Investments ? Prior Investments by VC/PE Firms Significant Mispricing leading to value creation from Listed/Global Peers Reasonable Liquidity and availability of options Companies on a definite IPO track

  5. Risk & Reward: Risk Profile/ Holding Period Exit 25% CAGR Returns Risk Profile is similar to listed securities, with added liquidity risks Exit – Either through sale on exchange on IPO or exit in the secondary market (in case of IPO delay/suitable returns achieved) On a gross portfolio level average returns for the last 5 year period has been of 25%+ CAGR Time Horizon : 2-3 years Major unlocking happens closer to an IPO

  6. FAQs Buying & Selling Process? How are shares delivered? Lock-in Period? Shares are delivered in Demat Form only. You can verify the same in your Broker/ NSDL/CDSL login Entire process is done Online through the platform Shares can be sold anytime prior to listing. On listing day they go for lockin for 180 days Shares are delivered within 6-8 hours

  7. FAQs Can NRI Invest? How do I sell post listing? What is the minimum amount? Yes, Shares will reflect similar to any listed shares post lock-in gets over Bank : NRO Bank Account Demat: NRI Non Repatriable Account Generally 10,000 INR in one script

  8. Past Exits Some of our notable exits We have always suggested our clients to invest for the long term for sustainable wealth building. The table below gives the multiple on exit in an IPO from our recommendation date.

  9. 2.5x Recent Exits Some of the recent exits in Pre-IPO Space Rs 430 Rs 1100 1.5 years 2x Rs 250 Rs 500 1 year

  10. Selling Post IPO (on the exchange) Selling in the Pre IPO Space Taxation Holding Period - 2 years for Long Term Long Term Capital Gains : 10% in excess of INR 1 lac Long Term Capital Gains : 20% with Indexation Short term Capital Gains: 15% under Sec 111A Short term Capital Gains: Slab rate

  11. Companies

  12. Industry - Auto Ancillary About: Companies to Invest in the Pre-IPO Space Studds is the largest manufacturer of helmets in the world and now exports its products to 39 countries. 3 production plants in Faridabad, Haryana. Product Portfolio - Brands - Studds & SMK Why invest? Practically Debt Free Leader in its segment 25% Market share Strong EBITDA margins ~ 24% Share Price rationalized from 2200 to 1200/sh

  13. Industry - IPL Cricket Team Companies to Invest in the Pre-IPO Space About : Chennai Super Kings is one of the most successful Indian Premier League (IPL) cricket team. Why invest in CSK? 2nd Most Successful IPL Franchisee Valued by Forbes at 1.15B$, translating to ~280/sh. Currently available at 170/sh 3X jump in Broadcasting rights revenue from 16k Crores to 48k Crores - Predictable Revenues Share price went up from 40/sh to 240+ rationalizing to 170

  14. Industry - Information Technology About - Hexaware is a mid-size fast-growing automation-led next-generation service provider in IT, BPO, and consulting services. Companies to Invest in the Pre-IPO Space Why invest? Diverse Product Offering - Serving companies across the globe in more than 5 segments Marquee PE Promoter - Carlyle Group, US based PE firm acquired the company at $3Bn. Currently available at $2Bn Sustainable Strong Growth - 5Yr revenue growth @ 15%, PBT growth @ 17%

  15. What to lookout for? There is a twist in the capital structure which makes the diluted capital base much larger and therefore the valuation becomes unattractive Companies where valuations are concerning Reliance Retail Ltd What to lookout for? Valuation in the pre IPO space is very steep compared to their expected IPO pricing Current Valuation: 2.2 B$ Expected IPO Valuation: 1.5 B$ Imagine Marketing Ltd (boAt)

  16. Walkthrough of investment in Pre-IPO companies

  17. Thank you! Questions?

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