Nureca jumps 66% on debut day, what should investors do?

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Shares of Nureca Limited made a stellar market debut on Thursday. The stock opened for trading at Rs 615 on the National Stock Exchange, compared to the issue price of Rs 400, marking a premium of 53.75%. On the BSE, Nureca opened at Rs 634.95, at a premium of 58.74%.

Nureca share price hit an intraday high of 666.64 gaining 66% and was trading around 645.75 minutes before the market closing time. This was almost 61% or Rs 245 above the issue price. So, the moot question now for investors is should they stay invested or book profits.

“Investor who applied just for the listing gains, can book profits as 60% is very good listings. But the investor who can hold the stock for the next six months or a year, should stay invested,” said Yash Gupta of Angel Broking.

For investors who applied but were not allotted any shares can buy the stock at this point, because it seems to be a very good company and having a very good business model. Along with that online chain and Doctor Trust products are very good. So, we believe that the company to do well in the near future, and even the long-term investor can buy at these levels, added Gupta.

Hemant Jani of Sharekhan is of the opinion that Nureca is in a niche segment offering health-related product through an online platform can witness good growth in the long run. The market size is very big, whereas the company is relatively new. So, it can grow at a very high rate. So, a lot of people can participate in the opportunity.

Nureca is engaged in the business of home healthcare and wellness products and enables customers with tools to help them monitor chronic ailments and other diseases. The company sells its products through online channel partners such as e-commerce players, distributors and retailers. It also sells products through its own website.

The Rs 100 crore-public issue received bids for 5,59,65,945 shares against 14,01,595 shares on offer, according to data available with the NSE. The quota reserve for retail individual investors was subscribed 166.65 times, while the category meant for qualified institutional buyers (QIBs) was subscribed 3.10 times and non-institutional investors 31.59 times.

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