Nureca Limited IPO Details

12 Feb 2021  Read 1817 Views

As the stock market is rallying to new highs, companies are also lining up for the IPO process in this favourable market.

Nureca Limited, a healthcare product company, is going for its IPO next week. The company has been on a high growth scale since its inception in 2016. 

The Nureca IPO will open for subscription from Feb 15 till Feb 17 with a price range of Rs. 396-400 each with a face value of Rs.10. This IPO forms a fresh issue of shares worth Rs. 100 crores.

Link Intime is the registrar of the IPO, and ITI Capital is the sole lead manager of the IPO. 

Let us get into the company details and analyze the investment prospects. 

About Nureca Ltd

Nureca Ltd was incorporated in 2016. The company is engaged in the business of healthcare and wellness products distribution and claims to offer quality, durability and innovative products to consumers for monitoring chronic diseases and improving their lifestyle. They also offer mother and childcare products, orthopaedics products, nutrition supplements, and lifestyle products.

Nureca Ltd has a strong presence in the online segment. They sell their products in online market space through various E-commerce players, distributors, and retailers, along with their own website (www.drtrust.in). The company become the very first to sell its products through Tata Group’s Croma stores (India’s first omnichannel electronic retailers) in October 2019.

They have a diversified product line in the home-health market, which makes Nureca a one-stop marketplace for the home health market. The company sells its products under the brand name of Dr Trust, Trumom, and Dr Physio. 

The company has seen significant growth in increasing its asset base since its inception. Also, it’s revenue has shown a growth of 60% from March 2019 to March 2020.

Saurabh Goyal is the promoter of Nureca Ltd. 

Competitive Strength of Nureca Ltd.

  • Nureca Ltd. has a sound portfolio, and it is continuously focusing on quality and innovation. 
  • The company has a robust business model.  
  • It makes use of modern technology and understands user preference. 
  • The company’s promoter Saurabh Goyal and the management team are highly experienced and sound.
  • Nureca also has a strong online presence. 

Financial Performance of the company 

Particulars

For the year ended in million

 

30-Sept-20

31-Mar-20

31-Mar-19

31-Mar-18

Total Assets

1,024.88

338.83

235.18

70.19

Total Revenue

1,229.73

994.87

619.83

200.69

Profit After Tax

361.80

63.95

62.26

31.12

Future Strategies of Nureca Ltd.

  • Nureca Ltd. plans to further diversify its product line and reach the unexplored market.
  • The company plans to further produce innovative products and strengthen its product-base. 
  • It also plans to increase the promotion of its product line and enhance its online presence.
  • The company plans to hire a more talented and experienced workforce. 

Nureca Ltd IPO Details

IPO Opening Date 

Feb 15, 2021 

IPO Closing Date 

Feb 17, 2021 

Face Value 

₹10 per equity share 

Listing At 

BSE, NSE 

Issue Type 

Book Built Issue IPO 

IPO Price 

₹396 to ₹400 per equity share 

Market Lot 

35 Shares 

Min Order Quantity 

35 Shares 

Max Order Quantity

490 Shares

Issue Size 

Eq Shares of ₹10 
(aggregating up to ₹100.00 Cr) 

Fresh Issue 

Eq Shares of ₹10 
(aggregating up to ₹100.00 Cr) 

Employee Discount 

20 

Nureca Ltd IPO Lot Size 

Application 

Lots 

Shares 

Amount (Cut-off) 

Minimum 

35 

₹14,000 

Maximum 

14 

490 

₹196,000 

Nureca Ltd IPO Tentative Timetable 

IPO Open Date 

Feb 15, 2021 

IPO Close Date 

Feb 17, 2021 

Basis of Allotment Date 

Feb 23, 2021 

Initiation of Refunds 

Feb 24, 2021 

Credit of Shares to Demat Account 

Feb 25, 2021 

IPO Listing Date 

Feb 26, 2021 

Who can bid how much?

Equal to 75 per cent of the IPO issue will be set aside for Qualified Institutional Buyers (QIBs); while 10 per cent of the issue will be reserved for the retail investors, and 15 per cent of the issue is for the Non-Institutional category.

The objective of the IPO

  • To meet the working capital requirement.
  • To meet corporate purposes expenditure.

Risk Factors 

  • Nureca’s products are highly specialized. If users will not accept any specialized products, it will hamper its cash balance. 
  • The company depends a lot on third parties for the manufacturing of its products. Any disruption from a third party will affect the business.
  • Company’s business relies heavily on channel partners. Any disruption from channel partners will eventually affect the business,
  • If the company is unable to increase its brand value, it is not a favourable thing eventually.

Closing Words

Nureca Ltd is continuously growing in the healthcare and wellness products segments in India. The company’s profit margin has also increased in the pandemic era. The company revenue has increased to Rs123 crore in the first half of FY20-21 from Rs 20.1 crore in the same period in FY17-18.

The consumer should check all the pros and cons of the company and then decide on investing in Nureca IPO, keeping in mind their financial goals

About the Author: Harshit Roy | 34 Post(s)

Harshit Roy is a BMS student at St. Xavier's College, Kolkata majoring in finance. He is bibliophile in nature, and quite eager to learn and read about new things in life.

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