The biggest stock exchange in India, NSE or National Stock Exchange was established in 1992 and got recognition as a stock exchange in 1993. Since then NSE has emerged to be as the leading Stock Exchange in India. Being a leading stock exchange in India, NSE holds many opportunities for anyone who chooses to invest in it.
In recent years NSE has seen some exponential growth. Their revenue shot up to ₹9500 crore in FY22 from ₹3896 crore in FY20. Their EBITDA has also increased significantly in the same time from ₹2655 crore to ₹7069 crore. EPS increased almost threefold from ₹38 in FY20 to ₹104.95 in FY22.
This shows that NSE is growing exponentially in the last few years. This is also reflected in NSE unlisted share price which increased from ₹2100 in 2021 to ₹3550 in 2023. In this blog today, we will tell you the growth opportunity that NSE holds for its investors.
Advantages Of Trading In NSE
Being the biggest stock exchange in India, NSE has its own advantages that result in better returns and opportunities for investors.
Higher Liquidity
It is no surprise that the NSE has higher liquidity than the BSE. In layman’s terms, buying and selling stocks through NSE is much easier than BSE. The volume of share trades on the NSE is much higher than that of the BSE, which means that there are more people buying and selling shares in the NSE. This brings more and more investors to the NSE which in turn increases NSE unlisted share prices.
Advance Technology
NSE is the most modern and technologically advanced stock exchange in India. It invests millions of dollars every year to update it’s technology which means easier and seamless trading which in turn extracts more investors. More investors mean that the NSE share price will also increase which will mean more money for investors. If you want to buy unlisted shares then it’s important that you only buy them through trusted online trading platforms like stockify.
Upcoming IPO
The NSE is planning on launching its IPO which will be a game changer. However, NSE has not yet filed any paperwork with SEBI regarding IPO. So there is very little information regarding the date, size, bid lot and face value of the IPO. But based on NSE’s performance in the last few years, it is safe to say that the IPO will be a success. NSE had previously said that it would offer 10% of its shares for listing. As per reports, the current grey market valuation of NSE is around ₹2 lakh crore, which means that the IPO is expected to be around ₹20,000 crore.
Investing in NSE can be a very good opportunity for investors as the grey market value of the stock exchange is increasing which shows its financial performance. On top of that NSE also owns 12 subsidiaries which are also performing very well. Many HNIs (High Networth Investors) are looking to buy substantial amounts of NSE unlisted shares because HNIs are planning on capitalising on the opportunity and earning a major return of more than 50%.
Future Opportunity for the growth of Investors depend solely on how NSE perform financially and the data tells us that it’s performing quite well there.
Risks Involved In Investing In NSE Unlisted Shares
As good as it may seem, trading stocks also comes with its own disadvantages and risks involved. Here are some risks involved in investing in NSE.
1. Liquidity
The main concern with buying unlisted shares is that liquidity in the grey market is very low which means that you can have a hard time finding purchasers. But this usually happens with companies that are generally not performing well and that is not the case with NSE. This factor still lingers around though and you have to keep it in consideration.
2. Lack Of Regulatory Framework
Due to the lack of regulatory framework in the grey market, it’s possible that you might end up buying shares for more than what they really worth. This is why it is crucial that you trade in unlisted shares through certified and trusted trading platforms like Stockify. It provides you with all the necessary data to evaluate the share yourself and to buy and sell the unlisted shares easily and in a safe manner.
Should You Invest In NSE Unlisted Shares
NSE is the largest stock exchange in India and it’s only going to be bigger so it’s safe to say that investing in NSE is a good idea, Investing in NSE can result in very good returns in the next few years. NSE unlisted share prices have increased exponentially and it has already given a 3X return to people who invested 3 years ago. This return will be there for the next 10 years at least as the Indian stock market is just coming to life. If you are looking to buy unlisted shares online then it’s important that you do it through platforms like Stockify which is a trusted and safe online trading platform for unlisted shares. Stockify lets you analyse the pre-IPO unlisted share and lets you evaluate a share on your own.