Nureca made a fantastic debut on the bourses today; as against the IPO price of Rs.400, it got listed on the BSE at Rs.634.95, a premium of almost 60%.

With the IPO getting subscribed by nearly 40 times, this kind of a listing was expected. Of this, it was actually the retail individual investor portion which was subscribed the most – 166.65 times. This is again probably because only 10% as against the norm of 35% was reserved for retail investors. The qualified institutional buyers (QIBs) was subscribed 3.10 times and HNIs by 31.59 times.

Our conclusion in the New Issue Analysis, “Small cap stock listing in T2T segment, expensive and unjustified pricing, weak competitive positioning, make this IPO appear opportunistic on the company’s part to merely ride the current market boom. Hence, we strongly advise investors to stay away from the IPO.” Clearly, like most IPOs nowadays, this is purely listing gains.