Pre-ipo information, account, risk and who apply.

Pre IPO :who apply for pre IPO and where? 

Pre IPO information in details

If you put money in a company before the IPO comes, then it will be called Pre-IPO Investment.  It is not illegal to invest in Pre-IPO Funds in India.

 Pre-IPO Funds: is legal in India? 

What is pre IPO in details. 

 You must have heard a lot about IPO, but have you heard about Pre-IPO Funds?  Actually, whenever a company or firm goes from private to public, it brings Initial Public Offering (IPO) for it.  Through IPO, money is taken from the market means people and the company gets listed on the exchange.  Now any person can buy and sell his shares.

    If you put money in a company before the IPO comes, then it will be called Pre-IPO Investment.  Means buying a stake in the company before the company is listed on the exchange is a pre-IPO investment.

 Is Pre-IPO Legal in India?

 The question must have arisen in your mind that are pre-IPO funds legal in India?  So the answer is yes.  Many angel investors in India invest money in a pre-IPO in a firm and they get good returns when the company is listed.  However, before investing money in any firm, they see whether there are chances of growth in the company or not.
     If you want to invest in any firm then it will not be legally illegal.  But you too, like big investors, should thoroughly study and read every information related to the company's finances.  Investing should be done only if the company appears to be reliable and growing in the future.

 Who can invest in Pre-IPO Funds?

 Pre-IPO funds are a new asset class.  Venture capital firms, private equity firms and asset management firms mostly invest in pre-IPO funds.  As per the regulations of the Securities and Exchange Board of India (SEBI), at least one crore rupees have to be invested in such funds.  High-Networth Individuals (HNIs) and family offices interested in investing in pre-IPO funds can make such investments.
     If you want to invest in pre-IPO funds, you should consult your financial advisor.  If you do not have a financial advisor, then you can take advice from people working in the field of finance.

 know the risk of pre IPO 

 There is also risk involved in investing in pre-IPO funds.  If you are eligible to invest in these then it is important for you to understand the risks involved before proceeding with your investment decision.

 The Cost of entry in pre IPO ?

    The initial cost to enter such funds can be high at times.  You should pay attention to this. The Shift in Market Attitudes: A company may be looking good right now, but it is difficult to say when the market outlook will change towards it. Government and regulatory constraints (  Governmental and Regulatory Obstacles) : Since it invests in pre-IPO funds, the company may face government or regulatory hurdles in getting publicly listed. Profitability Criteria: Profitability Criteria for each fund  may differ.

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