Nureca Limited IPO: Date, Price, GMP, Review & Details

Nureca is a B2C company engaged in the business of home healthcare and wellness products, which offers quality, durability, functionality, usability and innovative designs. 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 it sells its products through online channel partners such as e-commerce players, distributors and retailer. It also sells products through its own website drtrust.in. Nureca’s product portfolio is currently classified under the five categories including -

1. Chronic Device Products – products such as blood pressure monitors, pulse oximeters, thermometers, nebulizers, self-monitoring glucose devices, humidifier and steamers.

2. Orthopaedic Products – which includes rehabilitation products such as wheelchairs, walkers, lumbar and tailbone supports and physiotherapy electric massagers.

3. Mother and Child Products – which includes products such as breast pumps, bottle sterilizers, bottle warmers, car seats and baby carry cots.

4. Nutrition Supplements – which includes products such as fish oil, multivitamins, probiotics, biotin, apple cider and vinegar.

5. Lifestyle Products – which includes products such as smart scales, aroma diffusers, and fitness tracker.

Competitive Strengths

Diversified product portfolio.
Experienced promoter and management team.
Strong online distribution network.
Premium quality healthcare and wellness products.

Objects of the Issue:

The IPO proceeds will be utilized towards the following purposes:

To meet the working capital requirements of the business.
To meet general corporate purposes.

IPO Details

Subscription Dates 15 – 17 February 2021 Price Band ₹396 to ₹400 Per Share Fresh issue INR100 crore Offer For Sale Nil Total IPO size INR100 crore Minimum bid (lot size) Coming soon Face Value INR10 per share Retail Allocation 10% Listing On NSE, BSE

Tentative Timetable

Feb 15, 2021 - IPO Open Date

Feb 17, 2021 - IPO Close Date

Feb 23, 2021 -Basis of Allotment Date

Feb 24, 2021 -Initiation of Refunds

Feb 25, 2021 - Credit of Shares to Demat Account

Feb 26, 2021 - IPO Listing Date

Financial Performance -

Nureca’s financial performance (in INR crore)FY2018FY2019FY2020H1 FY2021Revenue20.162.099.5123.0Expenses15.753.190.974.3Net income3.16.26.436.2Net margin (%)15.410.06.429.4

Risks-

Company depend on third parties to manufacture products. If these organizations are unable or unwilling to manufacture our products, or if these organizations fail to comply with FDA or other applicable regulations or otherwise fail to meet our requirements, a business will be harmed.
Company depend heavily on channel partners such as third party e-commerce players, distributors and retailers and failure to manage the distribution network efficiently will adversely affect performance.
Company is dependent on the maintenance of existing product lines and service relationships, market acceptance of new product and service introductions and innovations for revenue and earnings growth.
The company faced intense competition and may not be able to keep pace with the rapid technological changes in the health product devices industry.

Outlook -

Nureca is a digital-first company wherein the company sells the products through online channels partners such as e-commerce players, distributors and retailer. Further, the company also sell its products through the company’s own website drtrust.in. Currently, 95% of revenues for the Company comes through digital channels (e-Commerce).

As part of this tie-up, Nureca will sell products from its Dr Trust and Dr Physio brands at 30 Croma stores across the country. There are numerous other market players, like Dr. Morepen, Health Sense, Agaro, Lifelong, Omron, Philips, Johnson and Johnson, Roche, Bayer. The company doesn’t have any listed player.

Eyeing the brand recognization and their focus on healthcare products we may see some attraction in the IPO. The innovation of products along with the enhancement of technology would be interesting to see in the near future. One should continuously look at the margins of the company in the next few quarters. Looking at short business history, inconsistent margins, and high debt on books. We assign an "AVOID" rating for the NURECA LIMITED IPO.

DISCLAIMER:

^{The information contained herein are strictly confidential and are meant solely for the information of the recipient and shall not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written permission of Swastika Investmart Ltd. (“SIL”). The contents of this document are for information purpose only. This document is not an investment advice and must not alone be taken as the basis for an investment decision. Before taking any decision to invest, the recipient of this document must read carefully the Red Herring Prospectus (“RHP”) issued to know the details of IPO and various risks and uncertainties associated with the investment in the IPO of the Company. All recipients of this document must before acting on the given information/details, make their own investigation and apply independent judgment based on their specific investment objectives and financial position. They can also seek appropriate professional advice from their own legal and tax consultants, advisors, etc. to understand the risks and investment considerations arising from such investment. The investor should possess appropriate resources to analyze such investment and the suitability of such investment to such investor’s particular circumstances before making any decisions on the investment. The Investor shall be solely responsible for any action taken based on this document. SIL shall not be liable for any direct or indirect losses arising from the use of the information contained in this document and accept no responsibility for statements made otherwise issued or any other source of information received by the investor and the investor would be doing so at his/her/its own risk. The information contained in this document should not be construed as forecast or promise or guarantee or assurance of any kind. The investors are not being offered any assurance or guaranteed or fixed returns on their investments. The users of this document must bear in mind that past performances if any, are not indicative of future results. The actual returns on investment may be materially different than the past. Investments in Securities market products and instruments including in the IPO of the Company are highly risky and they are generally not an appropriate avenue for someone with limited resources/ limited investment and low risk tolerance. Such Investments are subject to market risks including, without limitation, price, volatility and liquidity and capital risks. Therefore, the users of this document must carefully consider all the information given in the RHP including the risks factors before making any investment in the Equity Shares of the Company.Swastika Investmart Ltd or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither Swastika Investmart Ltd nor Research Analysts have any material conflict of interest at the time of publication of this report. Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions. Swastika Investment Ltd may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report. Research entity has not been engaged in market making activity for the subject company. Research analyst has not served as an officer, director or employee of the subject company. We have not received any compensation/benefits from the Subject Company or third party in connection with the Research Report.CORPORATE & ADMINISTRATIVE OFFICE - 48, Jaora Compound, M.Y.H. Road, Indore - 452 001 | Phone 0731 - 6644000Compliance Officer: Ms. Sheetal Duraphe Email: compliance@swastika.co.in Phone: (0731) 6644 241Swastika Investmart Limited, SEBI Reg. No. : NSE/BSE/MSEI: INZ000192732 Merchant Banking: INM000012102 Investment Adviser: INA000009843 MCX/NCDEX: INZ000072532 CDSL/NSDL: IN-DP-115-2015 RBI Reg. No.: B-03-00174 IRDA Reg. No.: 713.}

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