Pre-IPO investments in India were once limited to the ultra-wealthy and big institutions. But things are changing fast. With digital platforms and stronger regulatory support, access to Pre-IPO shares is widening. Today, even retail investors are stepping into an opportunity once reserved for HNIs and institutions. In fact, according to Moneycontrol, retail investors in NSE’s unlisted shares (up to ₹2 lakh) jumped from about 34,000 to 1.46 lakh in just one quarter.
If you’ve ever wondered whether you could participate in such deals, the answer is yes; opportunities are opening up for a wider audience.
What Are Pre-IPO Investments?
At its core, Pre-IPO investing means buying shares of a company before it lists on the stock exchange. These shares are unlisted and are often sold to raise capital or give early investors an exit.
Traditionally, this space was dominated by:
- Venture capitalists
- Private equity funds
- Angel investors
- Large family offices and institutions
Retail participation was nearly impossible due to high minimum ticket sizes. But now, that barrier is falling.
With new-age platforms, retail investors can buy smaller lots, sometimes starting from under ₹1 lakh. This enables diversification beyond listed markets and captures growth early.
The Changing Landscape in India
Earlier, Pre-IPO shares were sold only in large lots, often requiring investments in lakhs or crores. This created the myth that Pre-IPO investing was only for the very wealthy.
Now the scenario is very different:
- Digital platforms like Unlisted Assets and Stockify allow retail investors to participate in smaller-ticket deals.
- Surging demand is visible in NSE’s unlisted shares, which rose by about 36% in three months, from ₹1,650 in April 2025 to ₹2,225 in June 2025.
- Regulatory momentum is building, with SEBI working on a regulated pre-IPO trading platform to replace the grey market, thereby ensuring transparency, improved disclosures, and enhanced investor protection.
Clearly, Pre-IPO investing is no longer limited to big cheque-writers.
How Retail Investors Can Invest
If you’re wondering how to invest in Pre-IPO companies, here are some practical ways:
- Digital Platforms: Online marketplaces simplify buying and selling unlisted shares.
- ESOPs: Employees of startups often sell their stock options in secondary markets.
- Secondary Deals: Angel or early-stage investors sometimes exit before an IPO, opening a window for new buyers.
This growing access has already led to a rise in participation. For instance, the total number of unlisted NSE shareholders jumped from 39,201 to over 1.59 lakh within one quarter of FY26. That’s a clear signal of increasing retail interest.
Pre-IPO for HNIs and NRIs
Pre-IPO investment for HNIs and NRIs is also gaining momentum. With global investors eyeing Indian startups and companies, this space is attracting attention far beyond domestic markets.
At the same time, retail investors are not left behind. With digital platforms and better information, they too can participate, though with smaller amounts.
Key Considerations for HNIs and NRIs:
- Check FEMA guidelines before investing in unlisted shares as an NRI.
- Work with SEBI-registered intermediaries to ensure compliance.
- Diversify across sectors instead of concentrating funds in one company.
- Stay updated on taxation rules; capital gains tax on unlisted shares can differ from that on listed ones.
Always review exit strategies before committing funds.
Risks You Must Consider
While Pre-IPO returns can be attractive, risks should not be ignored:
- Liquidity Risk: Unlisted shares are harder to sell before listing.
- Valuation Risk: Without a market price, fair valuation is tricky.
- Regulation Gaps: Unlisted shares have fewer checks than listed ones.
Experts suggest limiting Pre-IPO exposure to a small portion of your portfolio. Also, keep in mind the six-month lock-in period after listing, during which you cannot sell your shares.
Conclusion
The belief that only the ultra-rich can benefit from Pre-IPO investments is fading. Today, HNIs, NRIs, and even retail investors have the chance to explore Pre-IPO funding for startups and build exposure to high-growth companies.
At Equentis Investech, we make this journey smoother. With our research-driven insights, risk analysis, and tailored strategies, we guide investors across all segments, helping you enter the Pre-IPO market with clarity and confidence.
With the right partner and the right strategy, Pre-IPO investments in India can become a valuable part of your portfolio and a step toward long-term wealth creation.
