Hi, everyone. Welcome to today's video. So
recently, I sold almost 70% of my holding on Zomato, and a part of that money I have rotated
into Swiggy. Why? Because Swiggy and Zomato are similar type of companies. I feel that valuation
of Swiggy is much better compared to Zomato as of now. Now, a natural question might be coming
into your mind that, Hey, how did I buy Swiggy? Because once you go on your Upstox Zerodha Groww
account, you don't see Swiggy. So how did I end up buying it? Can you do the same? The short
answer is a yes. Should you be doing it? The answer is it depends. And for that, you need
to watch this entire video. Please watch it carefully. This channel is for serious investors.
It's not like a recommendation-oriented investors, and then drop off. No, you have to understand
these type of videos systematically. I'll try to explain the entire logic in very simple
words. And the first key point that you need to understand is the difference between listed
and unlisted companies and why for some investors, it makes sense to buy unlisted stocks.
For example, if you consider Zomato, now if you go and open your Zerodha Groww
account, you can easily buy Zomato, sell Zomato. Now, this is a listed firm. And how did it get
to this point? Well, it goes through different stages. For example, when Zomato would have
started, it would have started really small. So that stage is called a seed stage. This is
stage one. Then after that, it did something called a Series A, B, C. You have a bunch
of investors, mostly VC, venture capitalist, who keep on pouring more and more money in a
company like zomato, and the size of the company keeps on growing. And why would these companies
or VC funds pour money into something like Zomato? Because they are getting something called as
equity. Equity, what's equity? Equity, it's stocks in this company. There's a lot of companies,
like PayTM, you can list them and tell me who are the VC investors in Paytm. This
is a small quiz for you guys. Similarly, there are like light speed ventures and
whatnot. And these type of companies go and invest in these type of startups and keep
on growing the size of the company. Now, at certain point in the company,
at certain point in the company, the size of the company. Now, at certain point
in the company, the company becomes really big. And then what happens? Then the game gets,
bringing it to retail investors. Now, retail investors, there is a process called as IPO.
Just before the IPO, there is something called as DRHP. Drhp is a prospectus.Zomato released as
well. This DRHP is like a kacha chhita or a report on the entire functioning of Zomato, its previous
financials, all that stuff. And this is prepared, then Sevi reviews it, and then finally it
gives permission.. And once the company IPOs, it becomes a publicly listed company. You can go
and buy these stocks as a retail investor. And then. You buy and sell these stocks on everyday
basis. So this is the journey just helping you understand through the chart, and then I'll
explain you what unlisted stocks are. For example, this journey that you're seeing here is the
post-IPO journey. In fact,. It has become a publicly listed company, and you can buy and
sell this talk at any point in time. So this was the entire thing. And I bought this talk
somewhere here. I gave a complete analysis of this on my YouTube channel also, community
also. And. I have almost made 150, 160% gain. And I have sold almost 70% of this stock.
Why? Because I feel that the valuations are a little bit expensive now, and there is a better
opportunity in Swiggy. Now, what type of company is Swiggy? Well, it is an unlisted company. Now,
why is it an unlisted company? And why am I saying that Swiggy's valuation is better than something
like Zomato?. For example, you need to know a little bit of history about Swiggy and Zomato.
So when Swiggy was roughly a $5 billion startup, what was the size of Zomato? Well, the Zomato size
was also close to $5 billion. Now, guess in 2024, where is the story? Well, Zomato's
valuation is close to $23 billion. Now, what is Swiggy's valuation? Swiggy right now in
the unlisted platform is getting sold between $11 billion to $13 billion. So almost.
Now, of course, there are differences, and many of you would comment, zomato, the fast
delivery business,. Then how do we buy a company like Swiggy? Or are there other unlisted
companies we can take a look at? Of course, yes. So this platform is called as InCred Money.
And you can go read more about InCred Money. It's a part of InCred Group. Incred Group is a
unicorn. brand ambassador and all that stuff. So you can go on the platform, read about unlisted
shares, and you will see a bunch of companies. For example, Oyo is there, SBI Mutual Fund is there,
HDB Financial Services is there. So many companies are there. And if you open, for example,
let's say HDB Financial, HDFC Group. So you have all the charts. Now, what will see. What
type of company is HDBE Financial Services? Well, it is an unlisted company. Similarly, SBI,
Mutual Fund, is what type of company? Again, it rose, rose, rose, and it. What about Swiggy?
Again, it is what type of company? Unlisted. It's okay. So are these unlisted companies? What
are the pros and cons of investing in these type of companies? Should you do it? Should
you not do it? So let me spend 5, 6 minutes explaining it. So on another note, I am doing a
deep dive for my students on Unlisted Stocks. I'm organizing this special class on Monday. It is
going to be a live class. In case you guys are interested on how to join it, you can check
the links in the description and comment box. Now, very quick explainer of unlisted companies.
Unlisted companies, which journey is it. Then they are somewhere between an IPO and pre-IPO stage.
Ipo, so it will become a public company. Ipo, it will remain in a private space only. This range
is where we are looking at. This is what we are defining as unlisted companies for me. Unlisted,
this is not a standard definition, but this is the scope that I wanted to quickly explain. Some
relevant examples would be HDV Financial, Oyo, and all these different types of companies. Now, more
importantly, what you need to understand, pros and cons, around the regulation of these companies.
It's okay. Here is what you need to know. These companies are regulated by Ministry of Corporate
Affairs. If you go to the website, you can get information by paying certain fees to Ministry
of Corporate Affairs, which is a Government of India entity. And whichever company I'm speaking
or about to speak about in this video, you can get information about that company by putting
in a little bit of money and downloading those reports from there. So I hope the regulation
part is also clear.. This is point one. Now, talking about pros and cons of
unlisted equities. So the first key point is, because these stocks, for example, just say
HDB Financial. Now, this is an HDFC Bank-bagged company. But. That's a simple point. So the stock
is not heated. So relatively in private markets, unless a lot of VC money is floating around, till
that point, the valuation on private or unlisted companies or valuation of it remains sensible. For
example, if you go back to the time of 2018, 2019, just before COVID, byju's and a bunch of other
unlisted players, so to say.. And valuation was crazy. Why? Because easy money was flowing in.
Interest rates were very, very low. Right now, what is the issue? Well, it is very hard for these
companies to survive. So many unicorns, in fact, Byjun' was more valuable than Zomato at one
point in time. It got crushed. Why? Because free money evaporated from the market. That VC money
evaporated from the market. So in a high interest rate environment, typically speaking, valuation of
unlisted stocks is more sensible. From the story. And therefore, I feel that unlisted stock
is in a good shape from that perspective. This is point one. So right now, valuation,
cheaper type, right? From that perspective. Second key point is that see, there is always
a market premium that gets added to unlisted stocks whenever they IPO. Go back to the time when
LIC, there was so much noise in the market about LIC IPO.. That is called as adding of market
premium. That you know, so that's the. This is called as market premium. Every reporter
will cover it, every magazine will cover it, every YouTuber will cover it, and all that stuff.
So that time, the market premium add on it. If you buy in the unlisted space first, if. And
then you have gotten this market premium by investing in that asset. Third is certainty of
procurement or certainty of allocation. Now, what is the meaning of this? For example,
if now you might be thinking, why should I invest my money in Swiggy now? Or why should I
buy HDV Financial now or SBI Mutual Fund now? I can buy it when the IPO announced. But the
IPO, you will not get it. Is that certainty? The answer is no. So these are three What are the
advantages if you invest in an unlisted company? What is the risk? Very quickly, again,
there can be valuation risk. For example, if you go and buy something like HDB
Financial. Now, what if the valuation is high? How would you figure it out? You
have to study the stock properly. Now, there is not much public information about HDB
Financial. The level of public information on a listed company is much more. So you're
dealing with that uncertainty. Now, again, I will cover how to value these privately listed
companies, what type of structures So you can use, etc, on my class that I'm doing. So you can check
the links. But anyways, I'll take you to the platform also and at least point you in the right
direction where you can look at. Second key point, and this is a problem which is called
as lock-in problem. So lock-in problem, for example, if you go and buy HDB financial here.
And now the company does not announce the IPO for two years. So now it will be difficult for you
to liquidate that stock. You can only liquidate it to other private investors. The equity can get
sold. That's not a problem even in private space. But that liquidity problem remains because it is
not a listed asset. But if you buy Swiggy today, you might not be able to liquidate it tomorrow.
Your best opportunity to liquidate will be after IPO. But here is a point. The point is that
see, as per SEBI rules, because you are buying an unlisted company, you can't liquidate it for
the next six months after it IPOs. Why? Because you are technically an insider. Very similar to a
founder of the company.. Now that is a problematic process. Why? Because the founder is the insider.
Similarly, employees are insider. And you are also buying that company in somewhat a preliminary
stage. Therefore, that restriction applies to you also, for six months, you will not be able
to liquidate. Then comes the final point is the liquidity risk. So liquidity risk, for example,
you have HDB finance,. Then a natural question comes, I was hoping to buy here and then sell
it here. Now, as you see, Zomato got listed at 125, and after that, the price has
gone down.. So this depends on how you're managing your portfolio, how you
think about investing. So this is a point. But if you want to do more study and
understand how to invest, then very simple. Go here on unlisted shares. You will see all these
different options. Click on anything. For example, SBI Fund Management Limited. If you want to buy
50 units, you can place the order. You can just simply press Invest Now. You have to log in first.
Again, talking about the safety of the platform, I have prepared a note which I will link in
the description and comment box. You guys can go and read more about it before making
a call, whether you should be investing, not investing. There is a special offer that
Ingrid Money has launched, and it will only be applicable for the first 1,000 users who will
transact. There is an additional 0.25% discount that you will get on any purchase that you're
making. Definitely it adds up. To avail that, you can check out my link in the description
and comment box and buy via that link. Just to summarize the entire video, should retail
investors invest in unlisted stocks? Yes or no, it depends on your portfolio, how you are
constructing it.. There is definitely there. There is definitely there is risk also.
A small tip that I will give here is, let's see, the biggest risk in unlisted space is
the liquidity risk. And here, if you buy a good brand, for example, HDFC Bank Group company, it's
a clean company, clean promoter, they have their brand risk and all that stuff. Are they going to
IPO? Yes,. But why would they not IPO? And even if they are not IPOing, you can still sell
these type of companies even in private market. Yes, it's also immediately transaction
now, but you will be able to liquidate your position. So remember to buy good brands
in this unlisted space, your profitable companies, or the good companies. If you're buying
that, then the chances of Ipoing. If you did, do press the like button and subscribe
to the channel, and I'll see you soon.