Zerodha CEO Nithin Kamath Warns Investors on Risks of Unlisted Stocks

Zerodha CEO Nithin Kamath Warns Investors on Risks of Unlisted Stocks




Nithin Kamath, CEO and founder of leading brokerage platform Zerodha, has issued a cautionary note to retail investors exploring the unlisted stock market.

In a recent post on X (formerly Twitter), Kamath highlighted several critical risks involved in investing in pre-IPO companies, including:

  • Low liquidity
  • Uncertain IPO timelines
  • Lack of regulatory oversight

His warning follows reports of significant losses faced by early investors in HDB Financial Services, who bought shares in the unlisted market hoping for big gains post-IPO.

“Many retail investors assume they can easily make profits by buying pre-IPO shares and selling them after a public listing,” Kamath noted.
“But it’s not that simple — these investments come with serious risks.”

He pointed out that the lack of liquidity means investors might not be able to sell their holdings when they want to. Also, IPO delays or cancellations can leave them stuck with investments for an uncertain period.

Kamath’s remarks serve as a timely reminder, especially with the growing popularity of pre-IPO shares in companies like NSE, CSK, and HDB Financial.

While unlisted shares can potentially offer high returns, retail investors should approach them with caution, conduct thorough due diligence, and be prepared for volatility.

Popular posts from this blog

Made-in-India iPhone Exports to the US Skyrocket: 97% Shipped Between March and May 2025

📱 Made-in-India iPhone Exports to the US Skyrocket: 97% Shipped Between March and May 2025 🔥 Apple's Strategic Move to Beat China Tariffs and Boost India Production Apple is rapidly increasing its iPhone exports from India to the United States in a significant shift that highlights its smart strategy to bypass high tariffs on Chinese-made products. According to recent customs data reviewed by Reuters, a stunning 97% of iPhones exported from India between March and May 2025 were shipped directly to the US . 📦 Record-Breaking iPhone Exports from India to the US Global tech giant Foxconn exported iPhones worth $3.2 billion (approx. ₹27,547 crore) from India during this three-month period , and almost all of them went to the US market. In May alone, shipments touched nearly $1 billion (around ₹8,608 crore), while the record was set in March with $1.3 billion (₹11,191 crore) worth of iPhones exported. This is a sharp jump compared to 2024, when only about 50% of India’s iPhone e...
Read more

FedEx Founder Frederick Smith Passes Away at 80: Remembering His Remarkable Legacy

FedEx Founder Frederick Smith Passes Away at 80: Remembering His Remarkable Legacy Frederick W. Smith , the visionary founder of FedEx , has passed away at the age of 80. The news was officially announced by FedEx CEO Raj Subramaniam through a company memo published on Saturday. Born in 1944 , Frederick Smith was a former officer in the United States Marine Corps and served during the Vietnam War . In 1973 , he founded Federal Express with just 389 employees and a fleet of 14 small aircraft . On its very first night, the company delivered 186 packages from Memphis to 25 cities across the United States . Over the decades, FedEx expanded into a global logistics powerhouse. Today, FedEx operates over 705 aircraft , more than 200,000 delivery vehicles , and manages nearly 5,000 global facilities . The company now employs approximately 500,000 people worldwide and handles an average of 17 million shipments every day . In 2022, Smith stepped down as CEO, passing the leadership t...
Read more