3 years ago, the unlisted share price of Pharmeasy was around ₹105, and now they are trading at ₹11, which is a 90% dump in its share prices. Once a very promising unlisted share, Pharmeasy has become one of the worst companies on the unlisted market. This is mainly because of the consistently poor performance of the company in terms of revenue and net profit. It's been 3 years since the pharma giant has made a profit. However, the company has filed its DRHP with SEBI and is waiting on the regulatory authority’s response.
An Overview Of PharmEasy
PharmEasy is a leading online platform that provides healthcare services like diagnostic tests, medical services, consultations, and medicines from registered pharmacies, laboratories, clinics, etc. The company focuses on providing healthcare facilities all over the country. The online services on the application are divided into different zones based on the area's pin code.
PharmEasy started its journey in 2015; the idea behind creating this online platform is to provide more accessible and affordable healthcare facilities. The company started by receiving funds through angel investment. When the company started to set its foot in the market, it offered pre-IPO stocks to retail investors. In 2021 this pharmaceutical company purchased 66% shares in Thyrocare. The company has a very straightforward and simple business model of B2B services. That connects service producers, potential buyers, suppliers, and distributors in one platform.
A Detailed Guide For PharmEasy Share Prices
Though PharmEasy is planning to register itself as an IPO in the future; the company started distributing unlisted shares to the inventors. In recent years the company gained good demand in the share market. Most investors sought help from unlisted share brokers and invested in the company to generate higher returns in the long term.
The company merged with the top five healthcare companies to form ‘API Holdings’. This became the biggest digital healthcare service-providing company in India.
Details Of PharmEasy Unlisted Shares
Total No. Of Share Available | 10,000 |
Face Value per Share | ₹1 |
ISIN | INE0DJ201029 |
Lot Size | 500 |
Current Share price | ₹11 |
Latest revenue | ₹5,781 crore in FY 2022-2023 |
Presently; no company can compare the success rate of PharmEasy. NetMeds was a suitable competitor, but when the company was acquired by Reliance Industries and another US-based listed company, there was no similar business to compete with the unlisted shares of PharmEasy.
Reasons Behind PharmEasy Falling Prices
Investors are a little anxious to know about the sudden fall in the PharmEasy unlisted share price by almost 70%. The key reasons behind the drop that expert stated are:
Volatility in Tech IPOs
One of the possible reasons is past trends of technology startups like Paytm, PolicyBazaar, CarTrade Tech, Nykaa, and Zomato, which are trading at discount prices after IPO. Instability creates a setback for investors who want to invest in a tech-based model. Also, it depicts the high volatility rate through investing in unlisted startups like PharmEasy.
Inefficient Demand & Supply
After COVID-19, many startups witnessed a slowdown in sales due to restrictions wave-off. In most cases, stock prices are directly impacted by demand and supply correlation. So, after the tech sell-off, the unlisted market attracts more sellers than buyers, which develops no equilibrium in demand-supply. As a result, it might be a good reason for the prices dropping.
Legal Restrictions on IPO
After the Confederation for All India Traders (CAIT) filed complaints about the business model dealing with gross illegality, the Securities Exchange Board of India (SEBI) introduced a disclosure regime for upcoming IPOs. It creates a hindrance to the launch of PharmEasy IPO and delays the process of extending it further.
So, all these possibilities create a roadblock for PharmEasy in expanding in the market. Also, the startup is struggling hard to dominate India’s pharma market with branded generics.
Follow These Tips Before Investing In Unlisted Shares
Go Through The Company’s Financials:
One of the most promising and simple indications of an unlisted share’s performance is its financial metrics like Revenue, EBITDA, PAT (Profit After Tax), EPS, and many others. If you want to evaluate your investment then thoroughly researching a company is your only way to step forward. If you have trouble finding the financial metrics of these companies, Stockify is here to help you. We have a team of people who will help you in making a good and profitable investment that you won’t regret. You should also look at other financials like the company’s total equity, total assets under control and other such financials to get an accurate idea as to how a company will perform in the future.
How To Buy PharmEasy Unlisted Shares?
PharmEasy unlisted shares are not available directly in the market; thus, you must connect with the brokers to buy unlisted shares in India. You can start by booking PharmEasy shares through a reliable broker from Stockify. Further, you would be provided with bank details and need to transfer the funds accordingly. After the payment is successfully processed, shares will be transferred to you within 24 hours. Now you can keep them as long or short-term investments.
If you are planning to buy unlisted shares in India, we advise you to connect with professional unlisted shares brokers. When a company is not listed on the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE), investors seek help from brokers to purchase a company's equity. With years of expertise in the stock market, the experts from Stockify are great at risk management and ensure better returns.
