Nureca IPO Opens Today: Should You Bet On This B2C Company IPO?

Amid IPO frenzy, today another public issue by B2C company into the area of wellness and healthcare will open its Rs. 100 crore IPO for public subscription. And ahead of the issue, the company aggregated close to Rs. 45 crore from anchor investors last Friday.

Issue details: The issue closes for subscription on February 17, 2021. And the price band has been fixed in the range of Rs. 396-400. Investors can bid for a minimum of 35 shares and in multiples of 35 shares thereafter.

Company details: The company offers solutions to track one's health and its products and solutions gained traction amid the pandemic and now as with the roll out of the vaccine, things are normalizing, in the long run there shall be difficulty in sustaining the performance. Nonetheless, the company's technology adoption will help scale its business.

Valuation of the issue: IPO is valued at 5.6x annualized earnings report in 1HFY21, which looks to be attractively valued given high asset turnover and return ratio of the company," Jain of Reliance Securities said. And in view of the attractive valuations, the brokerage has given a 'subscribe' rating to the issue.

SMC Global Securities Ltd is of the belief that considering the P/E valuation, on the upper end of the price band of Rs 400, the stock is priced at pre issue P/E of 46.91x on its FY20 EPS of Rs 8.53. Post issue, the stock is priced at a P/E of 62.55x on its EPS of Rs 6.40. Looking at the P/B ratio at Rs 400 the stock is priced at a P/B ratio of 5.81x on the pre issue book value of Rs 68.86 and on the post issue book value of Rs 187.83 the P/B comes out to 2.13x. While on the lower end of the price band of Rs 396 the stock is priced at pre issue P/E of 46.44x on its FY20 EPS of Rs 8.53.

Prospects of the issue -listing wise: Amid strong market momentum, we might see over-subscription as the issue is a small one and this might help in decent listing of the issue.

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