The Rs 100-crore IPO of Nureca, a B2C company engaged in the business of home, healthcare and wellness products, has received good subscription of 14.77 times on the second day of bidding, February 16.
But for the issue to sail through, the reserved portion of qualified institutional buyers has to get at least 90 percent subscription. So far, they have not put in bids for the issue yet.
The public issue has received bids for 2.07 crore equity shares against offer size of over 14.01 lakh shares, the subscription data available on the exchanges showed.
The retail investors continued to support the issue as their portion set aside has been subscribed 80.33 times and that of employees is at 2.49 times, while the reserved portion of non-institutional investors saw subscription of 1.49 times.
Nureca IPO: Top 10 things to know before subscribing the issue
Nureca, which enables their customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle, opened its public offer on February 15 with a price band of Rs 396-400 per share. The company has reserved Rs 1 crore worth of shares in the IPO for its employees who will get those shares at a discount of Rs 20 per share.
The company has already raised Rs 44.55 crore from anchor investors on last Friday, at higher price band. The issue proceeds will be utilised towards funding incremental working capital requirements.
Nureca is 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.
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Nureca classifies their products portfolio under the 5 categories such as chronic device products, orthopedic products, mother and child products, nutrition supplements and lifestyle products.
During COVID-19, company's products such as oximeter, gluco meter, nebulizer and BP monitor were categorised under the essential goods and their operations were not shut down during this pandemic.
"On valuation front, the company is coming up with IPO at price of Rs 400 crore with PE levels of 43.7 on FY20 basis, even company has done very well in first half of FY2021 also due to COVID-19. We have a positive outlook for the IPO," said Yash Gupta, Equity Research Associate at Angel Broking.Catch all the IPO news here