Nureca Ltd’s initial public offer (IPO) is set to open for subscription next week on February 15, 2021, after it received capital market regulator Sebi’s go-ahead to raise Rs 100 crore through public issue. Nureca Ltd will be sold in the price band of Rs 396-400 apiece of face value of Rs 10 each and will close on February 17, 2021. According to the Red Herring Prospectus, the equity shares of Nureca are proposed to be listed on BSE and NSE. The company plans to utilise the net proceeds of the issue for funding incremental working capital requirements of the company and general corporate purposes.
The company operates under a highly fragmented and unorganised market. Abhay Doshi, Founder, UnlistedArena.com — dealing in Pre-IPO & Unlisted Shares — told Financial Express Online, that the company has shown impressive growth in sales in first six months of FY21 which may be mostly due to fear of COVID-19 pandemic and patients avoiding visiting hospitals and clinics which led to increase in sales. However, as the situation is normalising, market growth too should settle to an earlier growth trajectory. “The E-commerce adoption strategy by the company is working very well and should continue to do well going forward. As the issue is tiny we may see a good fancy in the IPO,” Doshi added.
Who can bid for how much?
The bids for the issue can be made for a minimum of 35 equity shares and in multiples thereafter. Up to 75 per cent of the net issue will be reserved for Qualified Institutional Buyers (QIB). The company has reserved not more than 10 per cent of the issue for the retail investors and the remaining 15 per cent for Non-Institutional category. The issue also includes a reservation of equity shares worth Rs 50 lakh for subscription by eligible employees. A discount of Rs 20 per share is also being offered to eligible employees bidding in the employee reservation portion.
Nureca Ltd has strong e-presence and partners with various e-commerce players. Likhita Chepa, Senior Research Analysts at CapitalVia Global Research, told Financial Express Online that the company also managed to add on to and increase its asset base on a YoY basis. The revenue has grown nearly 60% from March 2019 to March 2020. The sector being under a broad category of FMCG is a defensive stock and prospects seem to be positive for the company.
ITI Capital Ltd is the sole book running lead manager to the issue and Link Intime India Private Ltd is the registrar to the issue. Nureca Ltd is a B2C company engaged in the business of home healthcare and wellness products, and sells its products through online channel partners such as e-commerce players, distributors and retailers.
What does Nureca do?
As per the Nureca’s RHP, the current addressable segments for Nureca in India and neighbouring countries are Chronic Disease Products, Mother and child care and Orthopedic products. They sell their products through their brand portfolios – Dr Trust, Trumom and Dr Physio. In October 2019, Nureca joined hands with Croma, country’s first omni-channel electronics retailer from the Tata Group, to emerge as the very first company to sell
healthcare and wellness products through Croma stores.