Nureca Limited IPO Details: Price, Date, Financial Performance and details Swastika
Nureca Limited IPO

Nureca Limited IPO Blog

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 –

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

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

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

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

(v) 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 proceed 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)
FY2018 FY2019 FY2020 H1 FY2021
Revenue 20.1 62.0 99.5 123.0
Expenses 15.7 53.1 90.9 74.3
Net income 3.1 6.2 6.4 36.2
Net margin (%) 15.4 10.0 6.4 29.4

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.

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