Investment Overview
Price Range₹396 - 400
Minimum Investment₹13,860
Minimum Quantity35
Open date15 Feb 2021
Close date17 Feb 2021
Application Timings10am to 5pm
Retail Investor can invest upto Rs 2,00,000 in IPO
Issue Details
Issue Amount : 100 CroresTotal shares for sale : 25,25,253 – 25,00,000 Equity SharesIssue Period : Feb 15, 2021 - Feb 17, 2021Face Value : 10 per sharePrice Band : 396 to 400Lot Size : 35 shares and in multiple thereafterRegistrar: Link Intime India Private Limited
Offer Breakup
QIB : 75% , 74.25 CroreNIB : 15% , 14.85 CroreRetail : 10% , 9.90 CroreTotal : 100% , 99 Crore
IPO timeline
Issue opens on:Monday, Feb 15, 2021
Issue closes on:Wednesday, Feb 17, 2021
23rd Feb 2021 :Finalization of basis of allotment
24th FEB 2021 :Refunds/Unblocking ASBA fund
25th FEB 2021 :Credit of equity shares to DP account
26th Feb 2021 : Trading commences
The objective of the offer
1. Funding incremental working capital requirements of their Company2. General corporate purposesAdditionally, Nureca Ltd expects to achieve the benefits of listing of their Equity Shares on the Stock Exchanges and enhancement of their Company’s brand name and creation of a public market fortheir Equity Shares in India.
Strengths
1. Strong portfolio of products
2. Consistent focus on quality and innovation
3. Asset light business model and competitive products
4. Combination of technical expertise and understanding of Indian consumer preference
5. Experienced Promoter with over 10 years of experience
6. Strong senior management team having domain knowledge
Risks
1. Dependence on third-party manufacturers. Failure to produce or inability to meet regulations will impact business
2. Dependence on channel partners like distributors and eCommerce partners
3. Promoters and members involved in search and seizure operation by the IT department which can increase tax liability4.
4. Unsecured loans availed by the company can be recalled by lenders anytime
5. Negative cashflows in the past and may happen in the future
6. Inability to correctly assess demand for their products can affect business
About the company
Nureca Ltd 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 their customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle. They believe in innovation and catering new products to the ever-growing needs of the home
health care sector. They are a digital first company wherein they sell their products through online channel partners such as e-commerce players, distributors and retailer. Further, they also sell their products through their own website drtrust.in. They have most of the product lines supporting the home
health market in India, making it a one-stop solution provider. Dr Trust is known for its innovative products in the market, and, with the segment showing significant potential for growth, the Company is positioned to show significant growth. (Source: Frost & Sullivan Report).
They have a diversified product portfolio, which primarily cater to the home healthcare sector. They provide an improved product mix to their customers and their preferences thereby targeting a wider customer base. Their growth is further driven by their ability to make available an assortment of quality products under trusted brands built by their Company. The Home Health Market in India and
neighbouring countries is pegged at ₹20,757.0 crore in 2019 and is expected to grow to ₹38,920.7 crore by 2025 at a CAGR 11.0%. The growth is driven by rising awareness of Health and wellness, increasing spending power, growing burden of chronic diseases, and the need for Healthcare stakeholders to reduce healthcare costs (Source: Frost & Sullivan Report).
Currently, they classify their products portfolio under the following five categories such as Chronic Device Products (BP monitors, pulse oximeters, thermometers etc…), Orthopedic Products which includes rehabilitation products such as wheelchairs, walkers, lumbar and tailbone supports and physiotherapy electric massagers, Mother and Child Products (breast pumps, bottle sterilizers, bottle
warmers etc..), Nutrition Supplements (such as fish oil, multivitamins, probiotics, biotin etc..) and Lifestyle Products (such as smart scales, aroma diffusers and fitness tracker). They market and sell products across India through their own website i.e. drtrust.in and third party e-commerce platforms, distributors and retailers.
The following brands are currently being used by the Company for its existing product range :
- Dr Trust
- DR PHYSIO
- trumom
Important Financials Data
Their revenue from operations on a consolidated basis was ₹99.43 Cr, ₹61.9 Cr and ₹20.05 Cr for Fiscal 2020, 2019 and 2018, respectively and ₹122.15 Cr for the six months ended September 30, 2020.
Their revenue from operations has grown at a CAGR of 122.68% during Fiscal 2018 to 2020.
Their EBITDA on a consolidated basis was ₹9.76 Cr, ₹9.14 Cr and ₹4.39 Cr for Fiscal 2020, 2019 and 2018, respectively and ₹50 Cr for the three months ended September 30, 2020.
The restated profit after tax on a consolidated basis was ₹6.39 Cr, ₹6.23 Cr and ₹3.11 Cr for Fiscal 2020, 2019 and 2018, respectively and ₹36.18 Cr for the six months ended September 30, 2020. Net profit has grown at a CAGR of 43.35% during Fiscal 2018 to 2020.
