Friday, 1 February 2013

Why one should invest in unlisted securities ?

>Shares in the unlisted horizon are available at P/E ratio of 1 to 3 times , whereas a company from a similar industry and identical financials and quality of management is generally listed on the exchanges at a P/E of about 10 to 50 times.
>As these shares are available at very modest valuation the investor stands to gain magnificent payouts when these shares are listed on the exchange in the next 1-2 years .
>Another plus is that the dividend yield is fabulous .
>Companies in the unlisted sectors generally have smaller equity base , so the net worth per share of the company is very high for the investor .
>A very small percentage of the actually existing companies is actually listed .
>A significant portion of the unlisted companies are over 50 year old and thus have real estates and assets at historical costs , the actual valuation of which is sometimes 1000 times the book value .
>A comparision reveals that dividend and bonus payout in these companies are higher as compared to their listed counterparts .
>These have also have been proven to stand the test of time and are way less volatile than listed shares. Thus these also it is also a lucrative option for long term investors .

Sandip Ginodia
We deal in over 60 unlisted companies with 15 years of expeirence . For latest prices visit / call : 09830271248 .

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