Entero Healthcare Solutions IPO: Everything you need to know

6 Feb 2024 , 12:04 PM

Established in 2018, Entero Healthcare Solutions Limited operates as a leading distributor of healthcare products in India. Leveraging innovative technology, the company offers comprehensive distribution services to pharmacies, hospitals, and clinics across the nation.

Over the fiscal years 2021, 2022, and 2023, Entero Healthcare Solutions catered to an expanding customer base, serving 39,500, 64,200, and 81,400 retail customers respectively. Additionally, they provided services to over 1,600, 2,500, and 3,400 hospital customers during the same period.

The company is coming up with an IPO, check details here:

Price Band and IPO Details:

• Haryana-based Entero Healthcare Solutions has announced a price band of ₹1,195-1,258 per share for its ₹1,600-crore initial public offering (IPO).
• The IPO subscription window will be open from February 9 to 13, with the anchor book bidding scheduled for February 8.
• The Entero Healthcare Solutions IPO is being managed by esteemed book running lead managers including ICICI Securities Limited, Dam Capital Advisors Ltd (formerly known as Idfc Securities Ltd), Jefferies India Private Limited, JM Financial Limited, and SBI Capital Markets Limited.
• Additionally, Link Intime India Private Ltd has been appointed as the registrar for the issue.

Funding Structure:

• Entero aims to raise ₹1,000 crore through fresh issue and ₹600 crore through offer-for-sale (OFS) route.
• Corporate promoter OrbiMed Asia III Mauritius will be the largest seller in OFS, offering 38.15 lakh shares.

Reservation for Investors:

• 75% of the net offer is reserved for qualified institutional buyers, 15% for high net-worth individuals, and the remaining 10% for retail investors.
• Retail investors can bid for a minimum of 11 equity shares, with the application size starting at ₹13,838.

Utilization of Proceeds:

• Entero plans to utilize ₹142.5 crore for debt repayment and ₹480 crore for long-term working capital needs.
• The remaining funds will be allocated to inorganic growth initiatives and general corporate purposes.

Financial Performance:

• Entero turned profitable in the six months ending September FY24, with a net profit of ₹11.64 crore, compared to a loss of ₹10.86 crore in the previous fiscal period.
• Revenue from operations saw a 19.7% increase to ₹1,895.5 crore during the same period.

Basis of Allotment and Trading:

• The basis of allotment for IPO shares will be finalized by February 14, with shares expected to be credited to demat accounts by February 15.
• Trading of Entero’s equity shares is anticipated to commence on both BSE and NSE from February 16.