All you need to know about Nureca Ltd IPO

Issue Details
Issue Amount : ` 100 Crores
Total shares for sale : 25,25,253 – 25,00,000 Equity Shares
Issue Period : Feb 15, 2021 - Feb 17, 2021
Face Value : �` 10 per share
Price Band : ` 396 to ` 400
Lot Size : �35 shares and in multiple thereafter
Registrar: Link Intime India Private Limited
Source : BRLM

Offer Breakup
Category Allocation Issue size (Shares) Issue size
(` in crore)

Lower Band Upper Band

QIB 75% 18,75,000 18,56,250 74.25

NIB 15% 3,75,000 3,71,250 14.85

Retail 10% 2,50,000 2,47500 9.90

Total 100% 25,00,000 24,75,000 99

Source : BRLM. Employee portion excluded in table

IPO timeline `
Issue opens on:
Monday, Feb 15, 2021 `

15
Issue closes on:
Wednesday, Feb 17, 2021

FEBRUARY

23rd Finalization of 24th Refunds/Unblocking

Feb 2021 basis of allotment Feb 2021 ASBA fund

25th Credit of equity 26th Trading

FEB 2021 shares to DP account FEB 2021 commences

Source : BRLM, Dates are tentative

The objective of the offer

01 Funding incremental working capital requirements of their Company

02 General corporate purposes

Additionally, 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 for
their Equity Shares in India.
Source : RHP and DRHP

`
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

Source : RHP and DRHP

Strengths

Strong portfolio of Consistent focus on Asset light business

products quality and innovation model and competitive
products

Combination of technical Experienced Promoter Strong senior

expertise and understanding with over 10 years of management team
of Indian consumer experience having domain
preference knowledge

Source : RHP and DRHP

Risks

Dependence on third-party Dependence on Promoters and members

manufacturers. Failure to channel partners like involved in search and
produce or inability to meet distributors and seizure operation by the
regulations will impact eCommerce partners IT department which can
business increase tax liability

` `

Unsecured loans Negative cashflows Inability to correctly

availed by the company in the past and may assess demand for their
can be recalled by happen in the future products can affect
lenders anytime business

Source : RHP and DRHP

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.

(in ` Crore)
HY Apr - Sep FY March FY March FY March
2020 2020 2019 2018

Total Assets 102.49 33.88 23.52 7.02

Total Revenue 122.15 99.43 61.9 20.05
from operations

EBITDA
50.00 9.76 9.14 4.39
Profit after Tax 36.18 6.39 6.23 3.11

Source : RHP

Particulars (in INR Crore) FY20 FY19 FY18

Revenue from Operations 99.43 61.9 20.05

Revenue Growth (%) 60.63 208.72 NA

EBITDA 9.76 9.14 4.39

Net Profit for the period 6.39 6.23 3.11

Net Profit as % to Revenue 6.43 10.06 15.51

Basic EPS (Rs ) 9.14 8.89 4.45

RONW (%) 42.82 78.36 180.93

Source : RHP. Revenue growth for FY 18 not available due to missing details regarding FY 17

The Company does not have any listed industry

peers in India.
Source : RHP
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Based on this financial year’s IPO data, it can be conveniently said that the
country represents a huge appetite for Initial Public Offers (or IPOs). In the
period April 2020 to Jan 2021, the country’s stock exchanges (both NSE and
BSE combined) witnessed 19 IPOs and raised proceeds worth Rs 34,003.78
crores in total. Some of the successful IPOs of 2020 were SBI Cards,
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others. In December some of the most successful IPO launches were for
Burger King which saw a listing day gain of 130.67% and Mrs Bectors which
saw a listing gain of 106.79%. The same fervour continued in January with
4 back to back IPOs including major IPOs of Indigo paints and IRFC.
Although IRFC lost some steam, Indigo Paints posted a listing day gain of
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Date IPO Name Issue Size Retail Total Issue Price List Price Listing CMP on Current Gains
(` in crs) Subscription Subscription (in ₹) (in ₹) Gains(%) 8/2/2021 (in ₹) (%) 8-02-21

28-Jan-21 Stove Kraft Ltd 412.63 26.04 18.03 385 445.95 15.83 452.8 17.61

25-Jan-21 Home First Finance 1153.72 6.59 26.66 518 527.4 1.81 536.5 3.57

22-Jan-21 Indigo Paints Ltd 1170.56 6.5 54.84 1490 3118.65 109.31 2675.2 79.54

20-Jan-21 Indian Railway Finance Corp 4633 1.59 1.16 26 24.85 -4.42 25.75 (0.96)

23-Dec-20 Antony Waste Handling Cell Ltd 300.53 16.55 15.04 315 407.25 26.29 322.3 2.32

17-Dec-20 Mrs Bectors Food Specialities Ltd 540.54 29.33 198.02 288 501 106.79 410.25 42.45

4-Dec-20 Burger King India Ltd 796.5 68.15 156.65 60 115.35 130.67 150.7 151.17

11-Nov-20 Gland Pharma 6479.55 0.24 2.06 1500 1710 13.4 2321.25 54.75

22-Oct-20 Equitas Small Finance 517.6 2.08 1.95 33 31 -6.06 47.2 43.03

7-Oct-20 Likhitha Infra 61.2 23.71 9.51 120 130 8.42 210.65 75.54

Source : Moneycontrol

For more details refer offer documents on sebi www.sebi.gov.in

The securities quoted are exemplary and are not recommendatory. Such representations are not indicative of future results.
Source of statistical information, charts, graphs etc – RHP, DRHP, Moneycontrol.

Investments in securities market are subject to market risks, please read all the related documents carefully before investing. SEBI Registration no.-INZ000240532, BSE-6707,
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