Nureca stocks debut on bourses at 59% premium over IPO price

• Shares of healthcare and wellness products distributor Nureca Limited made a strong debut today on exchanges with prices listing at about 59% higher at ₹634 apiece.
• The company's market value expanded to ₹665 crore after the listing.
• The company, incorporated in 2016, engages in the business of home healthcare and wellness products.
• Check out the latest news and updates on Business Insider.

Shares of healthcare and wellness products distributor Nureca Limited made a strong debut today on exchanges with prices listing at about 59% higher at ₹634 apiece, compared to IPO issue price of ₹396-400.

Within minutes after listing, the shares of Nureca gained 5% of their value and were trading at ₹666 apiece at 10:05 am in a robust market. The company's market value expanded to ₹665 crore after the listing.

The company, incorporated in 2016, engages in the business of home healthcare and wellness products. It sells blood pressure monitors, pulse oximeters, thermometers, nebulisers, and self-monitoring glucose devices under the brand name Dr Trust.

Nureca's asset-light business model was successful in attracting investment experts. The model allows Nureca to enter into agreements with vendors who manufacture the products as per the specifications. This allows the company to quickly scale its operations at a predetermined cost without incurring any capital expenditure on manufacturing facilities.

The initial public offer of Nureca, which closed last month, was subscribed 40 times. The offer of the Nureca, which got fully subscribed on the first day itself on February 16, received bids for 5.5 crore shares against 14 lakh shares on offer.

The category reserved for retail investors received the strongest response and was subscribed 166.65 times. The non-institutional investors' category was subscribed 31.59 times, and qualified institutional buyers(QIBs) was subscribed 3.10 times.

Grey market premium fizzled out ahead of the listing

Although the high number of subscriptions showed an excellent demand for its shares, just days ahead of the listing, the company's grey market premium fizzled nearly 50%, amid the high market volatility this week.

The shares that were earlier commanding a premium of ₹150-160 were significantly down to ₹70-80 a share.


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