What is Pre - IPO | Baadshah Broking Limited

Pre - IPO
The process of purchasing the share of a company before the company becomes Public is called Pre-IPO investing. Before a company goes Public and registers for an IPO, it requires massive funds to grow and create a customer base of its own. When someone invests in such a company to fund it, this investment would be considered as Pre-IPO investing.
Key Takeaways:
• Pre-IPO investing refers to investing in shares of a company before them becoming Public
• The company sells large blocks of shares to raise funds before going Public
• These early investors get the shares at a discounted price than the original IPO price
• Investing in Pre-IPO is not an easy process. It is highly advised to consult a financial advisor such as Baadshah Broking
• Baadshah Broking helps you get started with Pre-IPO investing at Zero Brokerage*
How does Pre-IPO investing work?
Whenever a company wants to expand and accumulate funds, they tend to provide shares of their company through Initial Public Offering (IPO). Sometimes their IPO value is not what they expected. Thus, to solve this issue they offer a large block of shares to big investors at a discounted price.
These large investors, such as Baadshah Broking further provide these Pre-IPO shares to their customers as an investment opportunity. When the company finally releases its IPO and the demand is at its all-time high, Baadshah Broking sells the shares and provides the highest profits to their customers at Zero Brokerage*.
Let’s illustrate it with an example
Suppose you are a person interested in the latest technology, who is looking to buy a new TV. You are tracking the latest news and you find a New Brand that is about to launch a TV with

new technology. You know that this is a good product, and you sign up for a pre-order, before its launch date. And you get the TV at a discounted price.
When that same product is released, everyone starts to see the potential in it. The demand is increased and the supply is low as it is a New Brand. Which results in the price hike of that TV, doubling its price to twice the MRP. Now, people are buying the same TV for more than twice the money you paid, meanwhile, you have the same TV, same specs but for a cheaper price.
Pre-IPO vs IPO, which is better?
• available at a
discounted price.
•
2 lakh rupees
Pre-IPO
Pre-IPO shares are available at a
Premium price. There is no restriction on the
IPO
1. IPO shares are only
2. There is a restriction of
maximum amount of investment of investment on a single PAN card. on a single PAN Card.
• It offers investment at an early 3. When IPO is listed, promoter dilutes
stage. majority of their stocks.
• It offers a higher profit yield 4. It has a lower profit yield very low
with a high probability of probability of acquiring the shares. acquiring the shares.
Why choose Baadshah Broking?
Similar to our various other investment ventures, we do in-depth research when it comes to investment. The core team at Baadshah Broking analyzes the potential Pre-IPO listings and exclusively picks the best Pre-IPO listings for our customers. Baadshah Broking Pre-IPO investing only offers the few handpicked and best listings.
Baadshah Broking only aims at providing the highest profits to our clients. While we already provide the best-discounted prices for Pre-IPO shares, on top of that Baadshah Broking offers them at a 10% lower price than the market price.

Start investing now with Baadshah Broking at Zero Brokerage*
Case Study
Alibaba Group, the e-commerce giant based in China announced its IPO listing in 2014. The Alibaba conglomerate announced that it would be listed on the New York Exchange as BABA. Many investors were excited to get a hold of this IPO.
Meanwhile, in advance of its IPO, Alibaba had offered Pre-IPO shares for large funds and wealthy investors. One such wealthy investor was Ozi Amanat who ran the K2 Global fund in Singapore. He was able to purchase $35 million of Pre-IPO shares at a discounted price below $60. Amanat then allocated these shares among his Asian investors.
When the IPO of BABA was launched, it closed near $90 per share that day. In November 2020, it was trading around 4276 per share.
With the Pre-IPO placement, Alibaba ensured that the company had sufficient funding before its IPO was launched. This Pre-IPO placement resulted in a successful IPO for Alibaba and high-profit returns for Amanat’s K2 Global clients.
Quick Overview
• What do you mean by Pre-IPO?
The purchasing of shares offered by a company before its IPO is called Pre-IPO investing.
• Is Pre-IPO legal in India? Yes, Pre-IPO is legal in India.
• Are there restrictions on the amount of investment capital in Pre-IPO?
There are no restrictions on the amount of investment capital on a single PAN card in Pre-IPO investing.