11 February 2021 2:31:PM
Nureca Limited, a fast-growing distributor of healthcare and wellness products, will launch an IPO (Initial Public Offering) on February 15, 2021. This option will be available until 17 February 2021 for a subscription. You can easily apply for this upcoming IPO via our IPO portal. Nureca Ltd, which owns the Dr. Trust brand, will sell a portion of the face value of Rs 10 each in the price band of Rs 396-400 and will close on February 17, 2021.
The Nureca IPO includes the issuance of equity shares worth Rs 100 crore, as shown by a draft red herring prospectus filed with Sebi. The firm, which submitted its preliminary papers to Sebi in November and received its comments on 11 January, submitted an update to the capital markets regulator.
Nureca is a B2C company engaged in the business of home healthcare and wellness products, which offers quality, durability, functionality, usability, and innovative designs. They enable customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle.
Products by nureca ltd:-
- Chronic Device Products – blood pressure monitors, pulse oximeters, thermometers, nebulizers, self-monitoring glucose devices, humidifiers, and steamers.
- Orthopedic Products – which includes rehabilitation products such as wheelchairs, walkers, lumbar and tailbone supports, and physiotherapy electric massagers.
- Mother and Child Products – which includes products such as breast pumps, bottle sterilizers, bottle warmers, car seats, and baby carrycots.
- Nutrition Supplements – which includes products such as fish oil, multivitamins, probiotics, biotin, apple cider, and vinegar.
- Lifestyle Products – which includes products such as smart scales, aroma diffusers, and fitness trackers.
3 reasons to invest in Nureca IPO:
- Asset light business model - They enter into agreements with vendors who manufacture the products as per the specifications and this allows Nureca to scale our operations quickly at a pre-determined cost without incurring any capital expenditure on manufacturing facilities.
- Penetrating into new geographies – In the market channel, Nureca plans to increase penetration by increasing counters where the brands are present and add sales promoters to high performing stores. It will also focus on expanding distribution in lower-tier towns.
- New Product Launches - Nureca has registered and applied for registration of various brands under various classes of trademark, which are not related to their current line of business.
How are the financials of the company?
The revenue from operations has grown from Rs 20 cr in FY18 to ~Rs 100 cr in FY20. PAT margins have also improved significantly to ~31% in Q1FY21 led by improvement in channel mix and cost efficiencies. Owing to the asset-light nature of the business, the ROE for FY20 is at ~42%.
What are the growth levers going ahead?
The diversified portfolio range, growth in the home healthcare segment, and higher online channel mix are estimated to drive profitability in the years to come.
Valuation and recommendation:-
The revenue from operations has grown from Rs 20 cr in FY18 to ~Rs 100 cr in FY20. PAT margins have also improved significantly to ~31% in Q1FY21 led by improvement in channel mix and cost efficiencies. Owing to the asset-light nature of the business, the ROE for FY20 is at ~42%. The diversified portfolio range, growth in the home healthcare segment, and higher online channel mix are estimated to drive profitability in the years to come. We recommend a SUBSCRIBE rating to the issue.
Important details about nureca IPO:-
||February 15, 2021, to February 17, 2021.
||Rs.10 per equity share.
||Rs.396 to Rs.400 per equity share.
|Min Order Quantity
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