Nureca Limited IPO: Dates, Price, GMP, Reviews and Risks

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Nureca Limited IPO

Nureca Limited IPO: Key Details

  • Grey Market Premium (GMP) today: ₹72 – ₹80
  • Raised 44.55 Crores via anchor investor sale of 11.13 lakh equity shares @₹400
  • IPO subscribed 39.93 times, overall

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Nureca Limited, incorporated in 2016, is a B2C company engaged in the business of home healthcare and wellness products. They have a diversified product portfolio that enables their customers with tools to help monitor chronic ailments and other diseases, to improve their lifestyle.

Nureca is a digital-first company, wherein they sell all their products through online channel partners such as e-commerce players, distributors and retailer. Further, they sell their products through their own website www.drtrust.in. They have most of the product lines supporting home health market in India, making it a one-stop solution provider. Dr Trust is known for its innovative products in the market, and, with the segment showing significant potential for growth.

Currently, the company classifies its products portfolio under the following five categories:

  • Chronic Device Products –which includes products such as blood pressure monitors, pulse oximeters, thermometers, nebulizers, self-monitoring glucose devices, humidifier and steamers.
  • Orthopaedic Products –which includes rehabilitation products such as wheelchairs, walkers, lumbar and tailbone supports and physiotherapy electric massagers.
  • Mother and Child Products –which includes products such as breast pumps, bottle sterilizers, bottle warmers, car seats andbaby carry cots.
  • Nutrition Supplements–which includes products such asfish oil, multivitamins, probiotics, botin, apple cider and vinegar.
  • (Lifestyle Products–which includes products such as smart scales, aroma diffusers and fitness tracker.

They aim to differentiate themselves from their competitors through innovation and design, use of advanced technologies and in-depth understanding of rapidly changing consumer preferences in India, which have enabled them to develop several new product categories that address unique customer needs.

Competitive Strengths

  • Strong portfolio of products and consistent focus on quality and innovation
  • Asset light business model and competitive products
  • Combination of technical expertise and understanding of Indian consumer preference
  • A well-recognized brand with a targeted marketing strategy
  • Experienced Promoter with a strong senior management team having domain knowledge

Company Strategy

  • Diversifying and strengthening the market by enabling them to cater to a wide range of geographies and customer segments
  • Strengthening the business through product innovation and new product launches
  • Strengthening up the business through effective branding, promotional and digital activities
  • Retain and attract the best talent and develop a performance-focused culture

Proceeds from Nureca Limited IPO will be used to:

  • Funding incremental working capital requirements of the Company; and
  • General corporate purposes.

Further, the company expects that the listing of the Equity Shares will enhance its visibility and brand image among existing and potential customers.

Nureca Limited IPO: Financials

201820192020 (Mar)2020 (Sep)
Revenue from Ops20.05 Cr61.90 Cr99.43 Cr122.15 Cr
Profit before Tax4.32 Cr8.84 Cr8.61 Cr48.65 Cr
Profit after Tax3.11 Cr6.23 Cr6.40 Cr36.18 Cr
EPS (Basic)4.458.899.1451.69

Industry P/E ratio comparison: There are no listed entities in India that are engaged in a similar line of business or whose business is comparable with that of Nureca’s business

Nureca Limited IPO Dashboard

Issue Details

TypeValue
Issue Size₹100.00 Cr
Fresh Issue₹100.00 Cr
Face Value₹10/- per Equity Share
IPO Price₹396 – ₹400
Lot Size35 shares
LotsMin 1 – Max 14

Key Dates

Date TypeDate
Bid Open15/02/2021
Bid Close17/02/2021
Allotment Finalization23/02/2021
Initiation of Refunds24/02/2021
Credit of Shares25/02/2021
Listing Date26/02/2021

Lot Size and Price

LotsSharesAmount
135₹14,000
14490₹1,96,000

Promoter Holding

HoldingPercentage
Pre-Issue93 %
Post-Issue70 %
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Nureca Limited IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB75%7,50,000* shares
NII15%3,75,000 shares
RII (Retail)10%2,50,000 shares
Employee26,595 shares
Total100%14,01,595 shares
*Shares left after anchor investor sale of 44.55 crores

Nureca Limited IPO: Risks

  • Nureca depends on third parties to manufacture its products. If these organizations are unable or unwilling to manufacture their products, or if these organizations fail to comply with FDA or other applicable regulations or otherwise fail to meet the requirements, the business will be harmed
  • The Promoters and some of the Directors have been subject to a ‘search and seizure’ operation by the income-tax department. Any adverse determination by the tax authorities in this matter could increase the tax liability and which may result in taxation and other proceedings against such individuals..
  • Company has experienced negative cash flows and may continue to do so in the future, which could have a material adverse effect on its business, prospects, financial condition, cash flows and results of operations.
  • The auditors’ report on the financial statements contain a certain emphasis of matters and qualification which could have an impact on the financial performance
  • Certain unsecured loans have been availed by the company which may be recalled by lenders at any time

For complete internal and external risk factors, you can refer the RHP of the company.

Nureca Limited IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime India Private Limited
C-101, 1st floor, 247 Park, L.B.S. M arg,
Vikhroli (West), Mumbai 400 083,
Maharashtra, India.

Phone: +91 22 4918 6200
Email: [email protected]

Lead Managers of the Issue

ITI Capital Limited
Naman Midtown, ‘A’ Wing, 20th Floor,
Senapati Bap at Marg, Elphinstone (West)
Mumbai –400 013, Maharashtra, India.

Tel: +91 22 4031 3371
Email: [email protected]

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