Nureca IPO listing gains or not? That is the question on most inevstors in mind regarding Nureca IPO. Zee Business Managing Editor Anil Singhvi has stepped in to provide the roadmap going forward. The Market Guru said that Investors are investing heavily in Nureca IPO. He said that there are extreme positives and negatives regarding this company. Nureca is into the business of Oximeters and Thermometers - these devices hings were used a lot during the Covid-19 pandemic period.  

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However, Nureca does not make any of these products, it sources them from third parties, put their brand name on it and market the product. This implies that the company is into trading. These third parties are domestic companies who import products from other countries. 

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So, coming back to our question at the beginning regarding Nureca IPO listing gains, Anil Singhvi said that high risk investors can apply for the same.

Singhvi said that the financial performance of Nureca’s last 6 months are extremely strong. The profit margin stood at 30% for past 6 months when compared to last 3 years is disappointing, which stood in the range of 5% – 8%, extremely weak

Demand for Nureca’s products increased during the Covid period. Oximeter and 'gun' sales to measure temperature witnessed huge demand during this period. It is a difficult situation to analyze as performance in the past 6 months is strong while that of 3 years are weak. So, making a judgment whether the sales will remain strong going forward is a tough decision to make. Anil Singhvi said people were more cautious earlier, the situation is not similar anymore.

However, Nureca business has strong growth potential going forward. The sales can improve from here on. The key issue is Nureca doesn’t manufacture these products, they source it from third parties and market it, and any other competitor can easily enter into this business.

Nureca IPO is a very small IPO; it is a Fresh Issue of Equity Shares aggregating upto Rs 100 cr. This is the only reason why Retail Investors are showing great excitement in this IPO. 

Nureca IPO Listing Gains:

The Market Guru said that the free float is extremely low and there are chances that Nureca IPO may list at a very good premium. This is a key reason why Retail Investors are so excited. The Retail reservation is only 10%.

Anil Singhvi highlights that the CMD of Nureca is 35 years old, he has experience of 10 years. VK Sharma, who used to be with LIC and brings in a great deal of experience, is on the Board of Nureca. Other Directors of the company don’t have a great deal of experience in this field, says Singhvi.

Singhvi says some investors might argue that young CMD brings in a lot of positivity as young people have good energy while some might worry about little experience. Lead manager of Nureca IPO is ITI, which has managed only 1 IPO till date, that also got listed at a discount to the offer price, this indicates the track record of the lead manager is not strong.

Promoters of Nureca are bringing IPO during this time because the primary market for the IPO is extremely promising due to a boom in Equity markets and secondly, Pharma sector is seeing good fund inflow due to Covid issues.

Anil Singhvi said that proceeds of the IPO will be used for working capital requirements and other corporate purposes. Nureca is not going to put any new manufacturing facilities with the IPO proceeds.