How to Buy Pre IPO Shares: A Complete Guide

What Are Pre IPO Shares?

Introduction

For investors seeking high-growth opportunities, pre IPO shares have emerged as one of the most exciting avenues. Pre IPO investing allows you to purchase shares of a company before it gets listed on the stock exchange, giving you early exposure to businesses with strong potential.

At Ultra, we aim to simplify access to alternative investments, including pre IPO and unlisted shares, enabling investors to diversify their portfolios and potentially enjoy higher returns.

This guide will walk you through how to buy pre IPO shares in India, where to find unlisted shares, the process of investing online, risks involved, and how platforms like Ultra make it easy for investors to participate.

Pre IPO shares are the equity shares of a company before it goes public. These shares are typically held by founders, employees, angel investors, venture capital firms, or early backers. As the company prepares for its Initial Public Offering (IPO), these shares may become available to high-net-worth individuals (HNIs), institutional investors, or even retail investors through specialized platforms.

Investing in pre IPO shares allows you to:

• Enter early before the company lists publicly.

• Potentially benefit from a lower entry price.

• Diversify your portfolio with high-growth private companies.

Why Invest in Pre IPO Shares?

• Early Entry Advantage – Get access to companies before the general public.

• High Return Potential – If the company performs well post-IPO, your investment could multiply.

• Portfolio Diversification – Exposure to private equity alongside traditional assets.

• Access to Emerging Companies – Invest in fast-growing startups and established firms planning IPOs.

However, pre IPO investing also carries liquidity risk, valuation uncertainty, and regulatory considerations, which makes due diligence critical.

How to Buy Pre IPO Shares in India

Here’s a step-by-step guide:

1. Identify Eligible Companies

Look for companies planning to go public in the near future. News updates, financial platforms, and SEBI filings often highlight upcoming IPO candidates.

2. Find Trusted Platforms

To access unlisted shares, you need to use specialized platforms like Ultra that connect investors with verified sellers of pre IPO shares.

3. Complete KYC & Documentation

Before investing, you must comply with Know Your Customer (KYC) requirements. Ultra provides a seamless onboarding process for investors.

4. Select the Shares & Place an Order

Browse available pre IPO opportunities, check company fundamentals, and choose the shares you want to buy.

5. Payment & Transfer

Once your payment is processed, the shares are transferred to your demat account, ensuring safety and transparency.

Where to Buy Unlisted Shares in India

Unlisted and pre IPO shares are not traded on stock exchanges like NSE or BSE. Instead, you can buy them from:

• Pre IPO investment platforms (ultra)

• Wealth management firms and brokers

• Employee stock option (ESOP) sales by existing employees

• Private deals with early investors

Among these, online platforms like Ultra are gaining popularity because they provide curated opportunities, safe transactions, and easier access for retail investors.

How to Buy Pre IPO Shares Online with ultra

ultra simplifies the process for retail investors:

Step 1: Sign up on ultra and complete KYC.

Step 2: Explore listed pre IPO opportunities.

Step 3: Review company details, valuations, and growth prospects.

Step 4: Place your investment order securely.

Step 5: Shares get credited to your demat account.

This online-first approach eliminates middlemen and ensures transparency.

Risks of Investing in Pre IPO Shares

While the potential returns are attractive, pre IPO investments come with risks:

• Liquidity Risk: Shares are not easily tradable before listing.

• Valuation Uncertainty: Pricing is not as transparent as in listed markets.

• Regulatory Restrictions: Certain limits may apply based on SEBI guidelines.

• Company Performance Risk: If the IPO fails or company underperforms, returns may be impacted.

Hence, investors should balance risk vs reward before making decisions.

Future of Pre IPO Investing in India

India’s startup ecosystem and IPO pipeline are booming. With companies like Ola Electric, PharmEasy, and Swiggy expected to go public in the coming years, pre IPO investing will continue gaining traction. Platforms like Ultra will play a pivotal role in democratizing access, allowing retail investors to explore this asset class.

FAQs on How to Buy Pre IPO Shares

Q1. How to buy pre IPO shares in India as a retail investor?

You can buy pre IPO shares through specialized platforms like Ultra, which provide safe and regulated access to unlisted shares.

Q2. Where to buy unlisted shares in India?

Unlisted shares can be bought via investment platforms, wealth managers, ESOP sales, or private investors. Ultra offers a simple online option.

Q3. Can I buy pre IPO shares online?

Yes, with platforms like Ultra, the entire process from KYC to investment and demat transfer can be completed online.

Q4. Are pre IPO shares risky?

Yes, pre IPO shares involve risks like low liquidity, valuation challenges, and regulatory limits, but also offer high return potential.

Q5. What is the minimum investment amount for pre IPO shares?

The minimum investment varies by company and platform. Ultra provides opportunities suited to both retail and HNI investors.

Conclusion

Pre IPO investing provides early access to high-growth companies before they hit the stock market. While the risks are higher compared to IPO or listed equity, the reward potential makes it attractive for long-term investors.

With ultra, you can buy pre IPO shares online in India safely, transparently, and conveniently—making alternative investments more accessible than ever.