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.