Nureca Limited which is tapping the capital markets with its fresh issue to raise Rs 100 crs in a price band of Rs 396-400, completed allocation to anchor investors. The issue opens on Monday the 15th of February and closes on Wednesday the 17th of February.

The company allotted 11,13,750 equity shares to two anchor investors. The first is Next Pact Limited who was allotted 8,63,745 equity shares or 77.55% of the anchor allotment while Next Orbit Ventures Fund was allotted 2,50,005 equity shares or 22.45% of the anchor portion.

This company has produced a questionable top line growth in the six months ended September 2020 where revenues have zoomed to Rs 122.97 crs against Rs 99.48 crs in the previous 12 months. What is even more shocking is the profit after tax at Rs 36.18 crs for the six-month period against Rs 6.39 crs for the previous year. The profit for other years was Rs 6.22 crs and Rs 3.11 crs. What explains the margin expansion leaves one wondering.

The promoters have issued themselves a more than handsome bonus of six shares for one in September 2020. There is a preferential issue of 5 lac shares in October 2020 of which 4.41 lac shares or 88.2% of the shares have been issued to a stock market intermediary, raising a fishy stink. This preferential offer was done at Rs 100 per share.

The entire issue and the way it has been done appears to be a fly by night operation.

BUYER BEWARE