The sixth initial public offering in the calendar 2021- Nureca IPO opens for subscription on February 15 and will close on February 17.
The company plans to raise Rs 100 crore via public issue. The price band for the public issue has been fixed at Rs 396-400 per equity share at face value of Rs 10 each. Investors can bid for a minimum of 35 equity shares and in multiples of 35 shares thereafter and up to 14 lots.
The company has reserved shares worth Rs 1 crore for its employees. The eligible employees will get shares at a discount of Rs 20 per share.
As per the company's DHRP, the company plans to utilise issue proceeds for funding incremental working capital requirements and general corporate purposes.
Nureca, that is engaged in the business of home healthcare and wellness products, had filed its papers with SEBI in November 2020 and received SEBI observations on January 11.
The company has already garnered Rs 44.55 crore from two anchor investors on February 12. Equity shares will be listed on BSE and NSE.
Yash Gupta - Equity Research Associate, Angel Broking said, "Nureca limited is a B2C company engaged in the business of home healthcare and wellness products. The company enables its customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle. Nureca is a digital-first company wherein they sell their products through online channel partners such as e-commerce players, distributors and retailers. Further, they also sell their products through their own website drtrust.in. Nureca classifies their products portfolio under the 5 categories such as Chronic Device Products, Orthopedic Products, Mother and Child Products, Nutrition Supplements and Lifestyle Products. We have a positive outlook for the IPO."
Reliance Research called the IPO attractively priced in the note and said," NURECA operates in a highly fragmented market. Company's financials are quite encouraging. While its revenue recorded 122% CAGR over FY18-FY20, its net profit grew by 44% CAGR during the same period. More importantly, NURECA's EBITDA and PAT became almost 5.7x in 1HFY21 compared to FY20 performance. This is mostly led by operating leverage. Further, robust margins and comfortable leverage position (gearing ratio at ~25%) led to a robust return ratio for the company. Debtor cycle also improved from 47days in FY20 to merely 6 days in 1HFY21."
The brokerage added in its note, "Further, IPO is valued at 5.6x annualized earnings report in 1HFY21, which looks to be attractively valued given high asset turnover and return ratio of the company. As there is no listed peer available, benchmark valuation is difficult to ascertain. However, thin history, frequent policy changes by the government and substantial improvement in earnings before fundraising could raise some apprehensions. However, considering attractive valuations and sizeable opportunity, we recommend SUBSCRIBE to this issue."