Nureca Ltd, a business to consumer (B2C) company engaged in the business of home healthcare and wellness products, has hit the capital market with a Rs 100-crore IPO. The 3-day IPO subscription period opened on Feb. 15 and ends on Feb. 17. Here are all the key details you need to know.
About the company
Nureca’s products primarily cater to the home healthcare sector. The corporate office is based out of Chandigarh. The company’s chairman is Saurabh Goyal. The company was incorporated in 2016. Dr Trust is its flagship brand. The products enable the users to effectively monitor chronic alignments and improve their lifestyle. Dr Physio is a brand used for products under orthopedic category such as electric massagers, wheelchairs and walkers.Trumom brand is used for products under the mother and child care category.
The company’s products portfolio can be arranged under five categories such as Chronic Device Products, Orthopaedic Products, Mother and Child Products, Nutrition Supplements and Lifestyle Products.
The company does not have any listed industry peers in India
IPO factbox
| Company | Nureca Ltd. |
| Open date | Feb. 15 |
| Close date | Feb. 17 |
| Allotment date | Feb. 23 |
| Listing date | Feb. 26 |
| IPO size | Rs 100 crore |
| IPO band | Rs 396 to 400 |
| Applications | Compulsorily in ASBA mode |
| Bid lot | 35 shares |
| Listing | NSE/BSE |
| Registrar | Link Intime India |
Strengths & weaknesses
Nureca has a strong portfolio of products, consistent focus on quality and innovation, and an asset light business model.
Risks include dependence on third party manufacturers, reliance on channel partners like distributors and eCommerce partners, and negative cash flow in the past.
Financials
Nureca’s revenue from operations on a consolidated basis was Rs 99.43 crore in FY20 compared to Rs 61.9 crore in FY19. For the six month of FY21, revenue was Rs 122.15 crore.
Their EBITDA on a consolidated basis was Rs 9.76 crore in FY20 compared to Rs 9.14 crore in FY19. But the EBITDA has shot up to Rs 50 crore for the three months ended September 30, 2020.
The restated profit after tax on a consolidated basis was Rs 6.39 crore in FY20 compared to Rs 6.23 crore in FY19. But that number too has shot up to Rs 36.18 crore for the six months ended September 30, 2020.
Nureca is net-debt free.
IPO proceeds and use
The IPO proceeds of Rs 100 crore will be used by Nureca to fund incremental working capital needs and general corporate purposes.
The IPO’s book running lead manager is ITI Capital.
IPO valuation
Nureca shares offer an operating yield of about 26 per cent post-IPO based on FY20 data.
The stock’s current P/E ratio stands at 62 times based on FY20 data and current P/B ratio stands at 2.6 times based as on September 30, 2020 data.
