How are Prices Decided for Unlisted Shares?

This is one of the most common questions beginners ask and for good reason. When you open Zerodha or Groww, you can see the exact price of any listed stock updated every second. But if you want to buy NSE unlisted shares or Zepto unlisted shares, there is no such live ticker. So how does the price get set?

The short answer: supply and demand, filtered through the judgement of market participants who closely track these companies.

But there is much more to it. Let us break it down.

There is No Official Price - Only a Market Price

Unlike listed shares where prices are discovered on exchanges through millions of orders every day, unlisted share prices are discovered informally. A buyer and a seller agree on a price, and that becomes the transaction price.

However, in practice, prices across different intermediaries and platforms for the same company tend to be similar. This is because buyers and sellers are all looking at the same publicly available information financials, news, funding rounds, IPO timelines to form their view.

What Factors Drive the Price?

Several factors influence what a buyer is willing to pay and what a seller is willing to accept:

Company fundamentals — Revenue, profitability, growth rate, market share, and business model. For example, NSE is highly profitable with dominant market share, which keeps its unlisted price elevated.

IPO timeline expectations — If a company is expected to list soon (like Zepto, which has been in IPO discussions), demand rises and so does the unlisted price. The closer the IPO, the more interest.

Last funding round valuation — If a company last raised money at a certain valuation, that acts as a reference point. OYO, for instance, has had multiple funding rounds at varying valuations, which have directly impacted its unlisted price trajectory.

Sector sentiment — If quick commerce or semiconductors are hot sectors, companies like Zepto and Polymatech see demand. When sentiment turns, prices fall.

ESOP supply — When employees of a company sell their ESOPs, it increases supply and can push prices down, especially if many employees sell around the same time.

Comparable listed peers — Analysts and savvy buyers compare unlisted companies to their listed peers. For example, MSEI's price is often benchmarked against BSE's listed price, applying a discount for lower volumes and liquidity.

Corporate events — Dividend announcements, bonus issues, rights issues, or any news about the company can move the unlisted price significantly.

A Practical Example: How NSE Unlisted Shares are Priced

NSE (National Stock Exchange of India) is the most traded unlisted share in India. Here is how price discovery works for it:

NSE regularly publishes its annual reports, which are public. Investors can calculate earnings per share (EPS) and apply a P/E multiple.

BSE is a listed company and acts as a direct comparable. If BSE trades at a certain P/E, buyers apply a similar (or slightly lower) multiple to NSE, adjusting for the illiquidity risk.

IPO discussions — NSE has been expected to go public for many years. Every time IPO news surfaces, the price jumps. When it goes quiet, prices consolidate.

Because NSE is a profitable, well-known institution, demand is consistently high, which keeps the price relatively stable compared to more speculative names.

Price Differences Across Platforms

You may notice that the price for, say, PharmEasy unlisted shares may differ slightly between platforms or intermediaries. This is normal and happens because:

Different intermediaries have different buyer and seller networks.

Some may have more current information than others.

Spreads (the difference between buy and sell price) vary.

As a buyer, it is always a good idea to check prices across 2-3 reputed platforms before transacting.

Can Prices Be Manipulated?

Because the unlisted market is less regulated, price manipulation is a real concern. Unscrupulous sellers can quote inflated prices, especially for less well-known companies. This is why we always recommend:

Buying only through reputed, established intermediaries.

Verifying the company's financial statements independently before buying.

Being cautious of companies where price has run up sharply without any business reason.

Avoiding any deal that seems too good to be true.

Key Takeaways

There is no official price for unlisted shares. Price is discovered through buyer-seller negotiations.

Key factors: fundamentals, IPO timeline, funding valuations, sector sentiment, ESOP supply, and listed peer comparisons.

NSE unlisted price is driven by its strong profitability and IPO expectations.

Always compare prices across multiple platforms before buying.

Price manipulation is possible — due diligence is non-negotiable.