Since 2016 Nureca Limited is a healthcare and wellness products
distributor. The company aims to offer the best quality, durable, and
innovative tools to customers to monitor chronic diseases to improve their
lifestyle.
The firm has a well-diversified product portfolio including Chronic Device Products, Orthopedic products, Mother and Child products, Nutrition Supplements, and Lifestyle products to meet the Indian healthcare market requirements. It is the first digital company to sell such products through its website drtust.in and other online partners i.e. e-commerce players, retailers, and distributors.
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Here are 10 things to know before subscribing to the issue:
1) About IPO
The initial public offering comprises fresh issue of Rs 95 crore
by the company and offer for sale of 82.50 lakh equity shares by promoters and
investors.
The offer for sale consists 6,90,700 equity shares by promoter
Rajendra Gandhi and 59,300 shares by promoter Sunita Rajendra Gandhi, and
14,92,080 shares by Sequoia Capital India Growth Investment Holdings I and up
to 60,07,920 shares by SCI Growth Investments II.
Investor can bid for a minimum of 38 equity shares and in
multiples of 38 equity 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.
9) Management
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.
10) Financials
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.