Entero Healthcare's IPO Sees Moderate Investor Interest

13 Feb 2024 , 03:49 PM

Contrary to predictions, investors are responding to Entero Healthcare’s initial public offering (IPO) mutedly on the second day of the bidding process. Just 19% of the issue has been booked thus far, and no categories have passed through. 

The public offer’s price range for equity shares is set at ₹1,195–1258.

Due to the company’s solid financial history, improved operational performance, and promising future growth prospects for the industry, analysts encouraged investors to subscribe to the IPO. 

The IPO consists of an offer to sell up to 47.69 lakh shares and a new equity issue of ₹1,000 Crore. Some of the people who will dump shares under the OFS are Prabhat Agrawal, Prem Sethi, Orbimed Asia Iii Mauritius, Chethan MP, and Deepesh T Gala. 

The proceeds will be used by the firm for general corporate objectives, debt repayment, long-term working capital requirements, funding subsidiaries, and the pursuit of inorganic growth strategies through acquisitions.

Through the book-building process, the offer is being made; qualifying institutional buyers will receive 75% of the issue, non-institutional investors will receive 10%, and retail investors will receive the remaining 10%. 

As of 3:30 pm on 13-02-2023, The QIB category was oversubscribed 2.28 times. The Non Institutional Investors category was subscribed 0.21 times and the Retail Investors category was oversubscribed 1.28 times. Employee reserved portion was subscribed 1.20 times.

Entero Healthcare Solutions offers pharmacies, hospitals, and clinics reach and accessibility, which benefits makers of healthcare products. The corporation operates 73 warehouses around the nation as of March 2023.

The primary goal of the company is to establish a technology-driven, well-organized platform for the distribution of healthcare products that will cater to the needs of the whole Indian healthcare ecosystem. Its customer base has risen and its geographic reach has expanded because to its pan-Indian strategy of acquiring and integrating smaller distributors. 

In FY23, operating income rose 31% YoY to ₹3,300 Crore, while losses decreased to ₹11.1 Crore from ₹29.4 Crore in the previous year. Additionally, the business has demonstrated consistent increase in operating revenue, with a CAGR of 36.2% from FY21 to FY23. 

The book running lead managers for the IPO are ICICI Securities, Dam Capital Advisors, Jefferies India, JM Financial, and SBI Capital Markets.

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