Nureca Limited IPO opens on Feb 15th, 2021. The company deals with wellness products in the growing home healthcare segment. It enables customers with tools that help them monitor chronic ailments and other diseases to improve their lifestyle. Nureca sells its products through online channel partners across e-commerce players, distributors and retailers, and its website.
The company’s product portfolio has five categories:
- Chronic device products
- Orthopedic products
- Mother and child products
- Nutrition supplements
- Lifestyle products
Key strengths:
- Diversified product portfolio that caters to the home healthcare sector
- Online presence is the need of the hour, and the company is very well present on digital platforms
- Asset-light business as the company operates on the contract manufacturing model and saves on capital expenditure
- Experienced promotor with knowledge in the healthcare sector
Amount in Rs Cr excluding per share data
- Rapidly growing revenue with healthy margins
- No listed companies operate in this space in India; therefore peer comparison is not possible
Offer and Deployment of Net Proceeds
| Particulars | Amount (In Rs Cr) |
| Fresh Issue | Rs 100 Cr |
| Less issue related expenses | — |
| Net Issue size | — |
Deployment of funds
- Fund the incremental working capital requirements
- General corporate purposes
IPO Factsheet
Conclusion thoughts:
- Low per capita healthcare expenditure in India provides a great opportunity
- Significant growth expected in the home healthcare segment, the majority of which is nutrition supplements segment, given the rising awareness about health and wellness
- Rise of the middle class and growing household income is advantageous
- Higher spending capacity and growing burden of chronic diseases work in favour
- Strong revenue growth and healthy margins
- Competition from cheaper product options, especially the ones imported from China pose a threat
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The information provided in the red herring prospectus filed by the company with the Securities and Exchange Board of India (www.sebi.gov.in) is the basis for this note. However, I recommend that the reader validate the data before making any financial decision. Also, investment in an initial public offering (IPO) is subject to market risks and should be evaluated, keeping your risk profile and investment objective in mind. The author will not be responsible for any financial loss or otherwise resulting from any action taken based on the above.
The author is a senior finance professional with over fifteen years of work experience in corporate finance and has an affinity for personal finance and investment management. Please leave your comment or share thoughts on this article via email at decodefinance.in@gmail.com. For more articles, please visit the website www.decodefinance.in
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