New Delhi, June 27 -- Low liquidity, delayed IPOs and lack of regulations are some of the key risks that investors face when they dabble in the world of unlisted shares, warned Nithin Kamath, the CEO and founder of stockbroking platform Zerodha.

Kamath's warning comes in the wake of a massive 40% loss that HDB Financial's pre-IPO investors are sitting on.

"Most investors think they can make easy money by picking these pre-IPO companies, waiting for the IPO, and making big listing gains. But it's not as easy as it sounds, and there are all sorts of risks," the entrepreneur said in a social media post on X today.

HDB Financial IPO's price of Rs.740 represents a significant 40% decline from its unlisted market value of Rs.1,225, which it ...