Nureca Ltd Stocks: Nureka Limited has given fierce returns to investors since listing in the stock market. Since the listing on February 25, the stock has raised investors’ money by 2.5 times in just 1.5 months. In the IPO, the company had put a price band of Rs 400 for the shares. While the share price has risen to Rs 1005 by 16 April. While the pressure of the Corona virus is visible on the market, Nureka’s stock has a continuous upper circuit. Even this year it has been the best IPO in terms of giving returns. On the other hand, from last year till now, it is third in giving returns. Only Root Mobile and Happiest Mind are ahead of it.
151% return from issue price
Nureka Limited had a strong entry into the stock market and it was listed on BSE at a premium of 59 per cent on 25 February. In the IPO, the company had put a price band of Rs 400 for the shares. While on the BSE, the stock was listed at a price of Rs 635 today. The stock closed nearly 67 per cent strong on the day of listing. At the same time, the share price has gone up to Rs 1005. That is 151 percent more than the issue price. With this Liharl, the investors who had invested money in the IPO, their money has become 2.5 times, that too within 2 months.
What does the company do
Nureka Limited is a healthcare and wellness product distributor company. The aim of the company is to provide customers with the best quality, durable and innovative tools, so that their lifestyle can be improved. The company has a well diversified product portfolio, which includes Chronic Disease Products, Orthopedics Products, Mother and Child Products, Nutrition Supplements and Lifestyle Products. Demand for these products increased during the Corona crisis. In such a situation, the company is benefiting.
What is expert report
According to a report by SMC Global, the company’s portfolio is better diversified which is its strength. Hence, there can be good growth in the company’s business ahead. The company’s growth in the home healthcare segment is good, which is looking to improve further. On the other hand, there are some challenges too. For example, delays in innovation or development of new products, technology challenges that may have some negative effects in the long term.
During the financial year 2019-20, Nureka had reported a revenue of Rs 99.48 crore and a profit of Rs 6.4 crore. The company’s total assets stood at Rs 102.48 crore for the quarter ended September 30, 2020. At the same time, the total revenue was Rs 122.97 crore. At the same time, profit after tax was Rs 36.18 crore.
Was subscribed 40 times
The IPO of Nureka Limited received a great response from investors. The IPO has received bids nearly 40 times. The reserve position for qualified institutional investors was subscribed 3.10 times, while for non-institutional investors, the reserve portion was subscribed 31.59 times. At the same time, the reserve portion for retail investors was subscribed 166.65 times.