Pre-IPO Shares
Pre-IPO shares are the shares issued by a company before it signs the Initial Public Offering to get listed on the stock exchange of India. Pre-IPO companies are often young and in their growing stage, for them to get listed under the stock exchange, they need to comply with certain guidelines and eligibility requirements such as market capitalisation, company size, listing fee, etc. Pre-IPO companies are companies that are either planning to go public in the near future or will eventually go public but would take time.
The main reason for investors to buy shares from pre-IPO companies is because of the expected profits. Investors tend to buy shares from pre-IPO companies as they sell their shares to investors at a lower or discounted price. When these companies get listed, the investors get significant profit from it.
ESOP Shares
An Employee Stock Option Plan, also known as Employee Stock Ownership Plan, is an option given to an employee to buy a certain amount of shares in the company in which they are working.
An employer can offer an option to their employees to buy a specific amount of shares at a pre-determined rate and after a pre-determined tenure. This option is time-bound and is known as the exercise term.
Delisted Shares
Delisted shares are shares from those companies that were listed on the stock exchange but are now removed from it due to certain reasons. Delisted shares can no longer be traded on the stock exchange and follow the same procedure as any other unlisted share.
A company gets delisted mainly due to two reasons i.e. voluntary delisting where the company voluntarily backs off and wants to get delisted and the other is involuntary delisting, where the company is removed from trading on the stock exchange due to failure to meet the requirements and regulations of stock exchange etc.