India's first pre-IPO exchange to be up on April 9
Exhilway Pre-IPO exchange have caught the fancy of 1600 PE investors. 7 emerging companies will commence trading on April 9, 2012 with a combined market cap of US $500 mn. Over 20 more companies may be added by the end of May.
- (1888PressRelease) March 31, 2012 - India's first pre-IPO exchange will commence trading on April 9 next month with a listing of 7 private companies which may have a combined valuation of little over US $500 million or INR 2500 crore. This will be the India's first pre-IPO exchange which will enable private companies to perform secondary market transactions of their stocks without fulfilling complex formalities, even the partnership firms will be able to raise funds by issuing membership units (MU) to the investors.
The transactions on Exhilway's pre-IPO exchange will be covered by US $100 million or INR 500 crore investor protection fund, hence the investors will be kept safe from any kind of frauds in the emerging companies. Exhilway will deeply investigate the management team, business model and financial condition of the company before allowing trading in its shares or membership units on its exchange.
According to market experts keeping in mind the future of such exchanges, most of the people trading on public markets like National Stock Exchange and Bombay Stock Exchange may invest a considerable amount out of their portfolios in the Exhilway Pre-IPO exchange keeping in mind the low volatility and growth potential of the index.
On an average a private investor who invest in companies listed on pre-IPO exchanges may make 200-500% on their invested amount in a short time frame. They become the first one to exit when the companies they had invested in list on public markets, the time of horizon of investment may be short but the returns are unbelievable. Its just like buying a cheap property in a jungle and selling for gold when the entire city is established.
Over 1600 private equity investors have expressed interest to invest in companies listed on Exhilway pre-IPO exchange. Earlier this month, Exhilway have expressed interest to join hands with a leading India based stock broker to manage private transactions, however nothing is announced till date but the insiders who are aware of the development has named SMC Global Securities as a potential suitor.
"Why go for an IPO when you can raise funding and build a market capitalization with so much ease," says Kiran Rao, CEO of new fashion brand Stacy Medlin which will be amongst 7 companies to be listed on Exhilway Pre-IPO exchange on April 9.
"Exhilway Pre-IPO market will certainly help small and medium companies or partnership firms to raise huge amounts with ease. Loans in India are difficult to get and are very costly, even the non banking financial companies (NBFC) who lend money to the businesses are interested to invest via pre-IPO markets as the returns they may receive is much higher," said Rahul Malhotra CEO of CandyDate Jobs India, another firm which will list on April 9.
Out of 7 companies the top 3 on the basis of market capitalization may be: StyleAdda.com with a valuation of US $246 million or INR 1230 crore, CandyDate Jobs (Candydatejobs.com) with a valuation of US $75 million or INR 375 crore and Stacy Medlin (Stacymedlin.com) with valuation of US $19 million or INR 95 crore.
Exhilway Pre-IPO market is confident to add 20 new companies by the end of May this year.