Nureca Limited IPO

Nureca is all set to open its IPO in the month of Feb 2021

Issue Details

Price Band: 396 - 400

Cutoff Price: 400

About Company

Nureca is a B2C company engaged in the business of home healthcare and wellness products, which offers quality, durability, functionality, usability and innovative designs. Company enable their customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle. Nureca believes in innovation and catering new products to the ever-growing needs of the home health care sector. Also, they are a digital first company wherein they sell their products through online channel partners such as e-commerce players, distributors and retailer.

Currently, their products is classified under the following five categories such as

1. Chronic Device Products: which includes products such as blood pressure monitors, pulse oximeters.

2. Orthopedic 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, botin, apple cider and vinegar.

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

Competitive Strengths:

1. Strong portfolio of products and consistent focus on quality and innovation.

2. Asset light business model and competitive products.

3. Combination of technical expertise and understanding of Indian consumer preference.

4. Experienced Promoter with strong senior management team having domain knowledge.

Strategies:

1. Diversifying and strengthening market by enabling us to cater to a wide range of geographies and customer segments.

2. Strengthening the business through product innovation and new product launches.

3. Strengthening up business through effective branding, promotional and digital activities.

4. Retain and attract the best talent and develop a performance focused culture.

Financial Performance:

Blue Bar is Revenue, Red Bar is Net Profit and Yellow Bar is Earning Per Share (EPS)

Objects of the Issue:

Company proposes to utilise the Net Proceeds towards funding the following objects:

1. Funding incremental working capital requirements of Company; and

2. General corporate purposes.

My view: Because of the increase in EPS from Apr-Sep 2020, this IPO seems to be slightly undervalued. P/E would be 7.75 and industry (wellness sector) P/E is around 74. I would apply for the IPO. Those who are risk averse can wait for the Grey Market Premium data to get updated and subscription details of first two days to get the idea of the participants interest. Do visit this blog and the link after 6pm to get updated details.

Grey Market Premium:

Subscription Details:

Allotment Status: Link

Listing Status:

Disclaimer: Views are shared for educational purpose. Please consult your financial advisor or planner before taking any action based on the views or facts shared on this blog.

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