Nureca’s Rs 100-crore IPO opens for subscription today; Check offer price details, bid size, closing date

The proceeds of the issue will be used for funding the company's incremental working capital requirements and for general corporate purposes, the company said in a statement.

Nureca is a B2C company engaged in the business of home healthcare and wellness products, which offers quality, durability, functionality, usability and innovative designs. The brands which are currently being used by the company include Dr Trust, Dr Physio and Trumom.

The revenue from operations for the firm has grown at a CAGR of 122.68 percent during 2018-2020 and net profit has grown at a CAGR of 43.35 percent in the same period.

Nureca is a digital first company wherein they sell their products through online channel partners such as e-commerce players, distributors and retailers. Further, they also sell their products through their own website drtrust.in.

According to analysts, key strengths of the company include strong portfolio of the products and consistent focus on quality and innovation, asset-light business model and competitive products and experienced promoter with strong senior management team having domain knowledge.

Nureca competes with local and global companies operating in India. The market is extremely fragmented with over 50 players, most of them Indian, with mostly generic products, showcasing no significant competitive advantage in terms of innovation or differentiation. There are numerous other players in the market, like Omron, Philips, Johnson and Johnson, Roche, Bayer competing on technological advances, features and competitive pricing.

The Home Health Market in India and neighbouring countries is pegged at Rs 20,757 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, growing burden of chronic diseases, and the need for Healthcare stakeholders to reduce healthcare costs.

Yash Gupta—Equity Research Associate, Angel Broking said he has a positive outlook for the IPO.