The IPO of Nureca Ltd, a company that makes healthcare and wellness products under the Dr Trust brand name, has received good response from investors. The company’s IPO was fully subscribed on its first day, but today on the second day of the public issue, retail investors have shown tremendous interest in this IPO. The company’s IPO was subscribed 13.66 times till 4.45 pm today. The company issued a total of 14,01,595 equity shares for this IPO, while it has received bids for 1,91,43,530 shares.
However, of concern for Nureca is the reserved portions for Qualified Institutional Buyers (QIBs). For any IPO to be successful, the QIB portion must be at least 90% subscribed, but Nureca’s IPO has not yet been bid by qualified institutional buyers. This IPO has been subscribed 1.38 times by non-institutional investors. At the same time it has been subscribed 74.27 times by retail investors and 2.15 times the reserve portion for the employees of the company.
Issue price fixed at Rs 396-400
Investors will be able to subscribe to this IPO by February 17. The company will raise Rs 100 crore through this IPO. Nureka Limited has fixed an issue price of Rs 396-400 for a share price of Rs 10 for this IPO. Its lot size is 35 equity shares. That is, investors have to bid for at least 35 shares. 75% of this Rs 100 crore IPO of Nureca Ltd is reserved for Qualified Institutional Buyers (QIBs). At the same time, non-institutional investors (NIIs) are capped at 15% and retail investors will be able to subscribe to only 10% shares.
Funds will be used here
In this IPO, shares worth Rs 50 lakh have been reserved for eligible employees of the company. Employees will get a discount of 20 rupees from the share issue price. Nureca will use the funds raised from this IPO to meet its working capital needs and general corporate expenses. In addition, the company will also use this amount to improve its visibility and brand image.