Nureca would be the sixth initial public offering in the calendar 2021 after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India REIT. The offer will open for subscription next week.
ITI Capital has been acting as a book-running lead manager to the issue.
Here are 10 things to know before subscribing to the issue:
1) About Public Issue
The company plans to raise Rs 100 crore via public issue, of which it already garnered Rs 44.55 crore from two anchor investors on February 12. The issue includes a reservation of Rs 1 crore worth of shares for employees.
Investors can bid for a minimum of 35 equity shares and in multiples of 35 shares thereafter.
2) Issue Opening & Closing Dates
The public issue will open for subscription on February 15 and will close on February 17.
3) Price Band
The price band for the public issue has been fixed at Rs 396-400 per share. The eligible employees will get shares at a discount of Rs 20 per share.
4) Objects of Issue
Nureca will utilise issue proceeds for funding incremental working capital requirements and general corporate purposes.
5) Company Profile
Nureca is a B2C company engaged in the business of home healthcare and wellness products. It enables customers with tools to help them monitor chronic ailments and other diseases to improve their lifestyle.
It is a digital-first company wherein it sells products through online channel partners such as e-commerce players, distributors and retailer. Further, it also sells products through its own website drtrust.in.
The home health market in India and neighbouring countries is pegged at Rs 20,757.0 crore in 2019 and is expected to grow to Rs 38,920.7 crore by 2025 at a CAGR of 11 percent. The growth is driven by rising awareness of Health and wellness, increasing spending power, the growing burden of chronic diseases, and the need for healthcare stakeholders to reduce healthcare costs, a Frost & Sullivan report said.
Nurcea classifies its products portfolio into five categories such as chronic device products, orthopaedic products, mother and child products, nutrition supplements and lifestyle products.
Dr Trust is its flagship brand, which enables the users to effectively monitor chronic alignments and improve their lifestyle.
Dr Physio is used for the products under orthopaedic categories such as electric massagers, wheelchairs and walkers. Trumom brand is used for the products under the mother and child care category.
6) Key Strengths
The company believes that the following are its primary strengths:
a) The company has a strong portfolio of products and consistently focuses on quality and innovation.
b) It has an asset-light business model and competitive products.
c) It has a combination of technical expertise and understanding of Indian consumer preference.
d) It has an experienced Promoter with a strong senior management team having domain knowledge.
7) Key Strategies
Nureca's strategies are focused on the following elements:
a) The company aims to diversify and strengthen the market by enabling itself to cater to a wide range of geographies and customer segments.
b) The company seeks to strengthen business through product innovation and new product launches.
c) The company seeks to strengthen up business through effective branding, promotional and digital activities.
d) The company retains and attracts the best talent and develops a performance-focused culture.
8) Promoter and Shareholding
Saurabh Goyal is the promoter of the company. He holds 34,99,979 equity shares, representing 46.67 percent of the pre-issue paid-up equity capital of the company. Payal Goyal, part of the promoter group, also holds the same number of shares in the company. They together hold 93.33 percent stake in the company.
Investor Yash Shares and Stock Private Limited holds a 5.88 percent stake in the company.
Saurabh Goyal is the Chairman and Managing Director of the company. He had worked with Nectar Life Sciences and has over 10 years of work experience in the marketing division.
Smita Goyal and Rajinder Sharma are Non-Executive Directors of the company. Vijay Kumar Sharma, Charu Singh and Ruchita Agarwal are Independent Directors on the board.
Aryan Goyal is the Chief Executive Officer of the company. He has more than 15 years of experience. Prior to joining the company, he was working with Nectar Lifesciences and Nectar Biopharma as President.
Sakshi Mittal is the Chief Financial Officer of the company. She has more than 7 years of experience in finance and accounts. Prior to joining the company, she was working with Nectar Life Sciences as Deputy Manager and Nectar Biopharma as Deputy Manager.
Nureca earned a profit of Rs 6.39 crore in the year ended March 2020, increasing 2.7 percent over the previous year, and reported 100.1 percent growth in profit in 2019 at Rs 6.22 crore compared to the previous year.
Revenue from operations grew by 60.6 percent to Rs 99.42 crore in FY20 compared to the previous year and increased 208.7 percent to Rs 61.9 crore in 2019 compared to the previous financial year.
The company clocked a profit of Rs 36.18 crore on revenue of Rs 122.14 crore for the six-month period ended September 2020.