The Rs 100-crore initial public offering (IPO) of Nureca Ltd opened for subscription on today at a price band of Rs 396-400 per share. The public offer will close on February 17. The company plans to raise Rs 100 crore via public issue. It has already garnered Rs 44.55 crore from two anchor investors on February 12.

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The proceeds of the issue will be used for funding the company's incremental working capital requirements and for general corporate purposes, the company said in a statement.

Most brokerages have a subscribe rating for the issue on the back of attractive valuations, diversified portfolios and expectations of strong growth.

"The company is expected to see good growth on the back of its diversified portfolio range, growth in the home healthcare segment and higher online channel mix," SMC Global said in a note.

However, it added that significant challenges or delays in the company’s innovation and development of new products, technologies and indications could have an adverse impact on the company’s long-term success.

Reliance Securities, on the other hand, stated that the IPO attractively priced.

"The 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. As there is no listed peer available, benchmark valuation is difficult to ascertain. However, thin history, frequent policy changes by the government and substantial improvement in earnings before fundraising could raise some apprehensions. But considering attractive valuations and sizable opportunity, we recommended subscribing to this issue," it explained.

Yash Gupta - Equity Research Associate, Angel Broking also has a positive outlook for the issue.

"Nureca limited is a B2C company engaged in the business of home healthcare and wellness products. The company enables its customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle. Nureca is a digital-first company wherein they sell its products through online channel partners such as e-commerce players, distributors and retailers. Further, they also sell their products through their own website drtrust.in," it noted.