A digital-first company, Nureca sells products through online channel partners such as e-commerce players, distributors and retailers.
The Rs 100-crore Nureca IPO was subscribed nearly two times withi n the first 90 minutes of the bidding process on Monday, the first day of the issue and is currently subscribed 4.3 times.
Prospective retail investors can bid for a minimum of one lot of 35 shares, and a maximum of 14 lots, or 490 shares.
However, employees of the company are being offered a discount of Rs 20 per share.
The offer has so far received total accumulated bids of 60.87 lakh equity shares against IPO size of 14.01 lakh shares respectively.
The revenue of the company rose at a compounded annual growth rate of 122 per cent over FY18-FY20 while its net profit grew 44 per cent CAGR during the same period.
The company is expected to see good growth on the back of its diversified portfolio range, growth in the home healthcare segment and higher online channel mix.
The company aims to utilise IPO proceeds for the purpose of funding incremental working capital requirements.
Further, the issue is set to be closed on February 17, 2021.
Nureca’s EBITDA and PAT became almost 5.7 times in H1FY21 compared to it’s FY20 performance.
Debtor cycle also improved from 47 days in FY20 to merely six days in H1FY21.
Significant challenges in company’s innovation and development of new products, technologies which could adversely impact the company’s long-term success.
It also sells products through its own website drtrust.in of which India is the major market with around 84 per cent plus-market share.
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