Nureca’s IPO will open for subscription on February 15, should it subscribe or not? Know the opinion of experts

The IPO of Nureca Ltd, a company that makes healthcare and wellness products under the Dr Trust brand name, will launch on 15 February and investors will be able to subscribe to it by 17 February. 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. The company has appointed ITI Capital Ltd as its lead manager for this IPO.

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. 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. In this IPO, promoters will sell some of their shares through OFS, while fresh shares will also be issued. The company’s stocks will be listed on the BSE and NSE.

Know the opinion of experts before investing

Market experts are positive on Nureca Ltd’s IPO. Likhita Chepa, senior research analyst at CapitalVia Global Research, said the company’s electronic and digital presence is strong and has partnerships with several e-commerce players. The company has also been successful in strengthening its asset base and the company’s revenue has increased by more than 60% between March 2019 and March 2020. He said that the company’s outlook is positive and investment in it will prove to be a profitable deal.

Funds will be used in these needs

According to the draft Red Herring Prospectus (DRHP) filed in SEBI, 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. Let us tell you that Nureca Ltd manufactures wellness products along with home healthcare. Also develops tools for monitoring people with chronic ailments. The company makes orthopaedic products along with chronic disease products, mother and childcare products and sells these products through e-commerce platforms and retailers along with its website.

The tremendous growth in the first half of FY21

While Abhay Doshi, co-founder of UnlistedArena, which oversees the gray market with pre-IPO and unlisted shares, said the company operates in a scattered unorganized market, Nureca Ltd has shown tremendous growth in the first half of FY21 and Its sales have increased significantly. Also, the company’s e-commerce strategy has been successful. He advised to subscribe to this IPO and said that due to the small issue size, its investors will be able to make profits. The company’s net profit for the quarter ended September 30, 2020 was Rs 36.18 crore. The company’s total revenue was Rs 122.97 crore and total assets were Rs 102.48 crore.