Nureca Ltd got bids for about 8.03 million shares, against 1.4 million, according to data available on the exchange
The company will utilise the IPO proceeds for funding incremental working capital requirements
Mumbai: The ₹100-crore initial public offering of health and wellness products maker Nureca was subscribed 5.73 times on Monday, the first day of bidding.
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.
Nureca Ltd got bids for about 8.03 million shares, against 1.4 million, according to data available on the exchange.
The retail portion was subscribed more than 31.23 times, and that of non-institutional investors was subscribed 54%, while qualified institutional buyers are yet to bid.
Nureca, which owns the Dr Trust brand for home healthcare and wellness products, sold 1.11 million shares to two anchor investors at ₹400 each, raising ₹44.5 crore a day ahead of its IPO.
Analysts at Reliance Securities in a IPO note said "Nureca’s Ebitda and net profit became almost 5.7 times in H1FY21 compared with FY20 performance. This is mostly led by operating leverage. Further, robust margins and comfortable leverage position -- gearing ratio at 25% -- led to robust return ratio for the company."
The company will utilise the IPO proceeds for funding incremental working capital requirements.
It is the sixth public issue among IPOs launched so far in 2021. IPOs of Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft and Brookfield India Real Estate Trust, so far, launched in the current calendar year