Investor confidence in unlisted shares was shaken after recent developments that saw online drugstore PharmEasy issuing new shares in a rights issue at a 90 per cent discount to its previous valuations and Reliance Retail's move to buy back and cancel shares held by public investors.
Both stocks were, at one time, very popular in the unlisted market, with canny investors cornering them with the objective of benefiting from their listing.
'Since investors have suffered losses on both counts, they will be careful when it comes to dealing in shares of unlisted companies,' observes a broker dealing in unlisted shares, adding that there will be some rationality to the pricing.