IPOs (initial public offerings) have again picked up the pace on Dalal Street. Brookfield REIT made its trading debut this week, while the ongoing Nureca and RailTel’s public issue have been fully subscribed. Nureca’s IPO closes for a subscription today while RailTel’s IPO, entering the second day of bidding, has already been oversubscribed by investors.
Currently, the Rs 100 crore Nureca IPO, which got subscribed on Day 1 itself, got nearly 23 times subscription by Wednesday afternoon. The three-day issue closes today.
The IPO, shares under which are being sold in the price band of Rs 396-400, received bids for 2,79,13,865 shares by 12:20 pm, which was 19.92 times the issue size of 14,01,595 shares.
The issue was subscribed 14.77 times till the end of Day 2 of the bidding process on Tuesday and 5.73 times till Monday.
Leading the pack are retail investors who have bid for 83.46 times the quota reserved for them. Employees of the business to consumer firm have oversubscribed their portion 1.56 times. Meanwhile, Non-Institutional Investors (NII) have bid for 1.52 times their portion. Bids by Qualified Institutional Buyers (QIB) remain non-existent so far, however, they could still ramp up their bids later today.
At the upper price band, the stock is priced at pre-issue PE of 46.91 times its FY20 EPS of Rs 8.53. Post issue, the stock would be priced at a P/E of 62.55 times on its EPS of Rs 6.40. Prospective retail investors can bid for a minimum of 1 lot of 35 shares and a maximum of 490 shares or 14 lots. Employees of the company are being offered a discount of Rs 20 per share. The company has allotted 11,13,750 shares worth Rs 44.55 crore to two anchor investors at an upper price band of Rs 400 per equity share.
Nureca’s IPO is completely a fresh issue of equity shares. Post the IPO, promoter shareholding in the firm is expected to go from 93.33% to 70% while that of public shareholders is expected to surge to 30% from the current 6.67%. A B2C company engaged in the marketing of home healthcare & wellness products, Nureca has no peers currently trading on the stock exchanges. Working in the healthcare industry, Nureca offers tools to customers to monitor chronic ailments and other diseases, to improve their lifestyle.