Entero Healthcare Solutions Limited

About Entero Healthcare Solutions Limited  Incorporated in 2018, Entero Healthcare Solutions is among India’s top three healthcare product distributors as of FY22. It also achieved the fastest scale-up of operations among healthcare product distributors in India between FY19 and FY22. It offers distribution services to healthcare product manufacturers by distributing their products to pharmacies, hospitals and clinics. It has a pan-India distribution platform with 77 warehouses spread across 38 cities in 19 states and union territories as of 30 September 2023. It catered to 73,700 retail customers and 2,800+ hospital customers in the six months ended September 2023.  With its nationwide reach, the company can procure products at competitive prices and have a wide product range with adequate inventory levels. On the flip side, the company helps healthcare product manufacturers by providing access to a large number of clients, data intelligence and analytics of sales; and end-to-end distribution channels.Furthermore, the company can provide a diverse spectrum of healthcare products, including pharmaceutical products, nutraceuticals, medical devices, surgical consumables, over-the-counter medicines and many others, enabling its customers like pharmacies, hospitals and clinics to fulfill their diverse procurement needs.  Entero Healthcare Solutions has grown its business through both organic and inorganic means. Since its inception, the company has acquired 34 companies operating in the healthcare products distribution industry. It saw a CAGR rise of 22% in its revenue from operations between FY21 and FY23, and 19% between Q2 FY23 and Q2 FY24. Moreover, the Indian healthcare market is expected to grow at a CAGR of 11% to 12% between FY23 and FY28, which could benefit the company.  And now, Entero Healthcare Solutions Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to repay borrowings, fund long-term working capital requirements, pursue acquisitions and for general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the Entero Healthcare Solutions Limited IPO:     Company Name  Entero Healthcare Solutions Limited   Company Type  Private    Company Established On  2018   Entero Healthcare Solutions Limited IPO Opening Date  9th February 2024    Entero Healthcare Solutions Limited IPO Closing Date  February 13, 2024   Entero Healthcare Solutions Limited IPO Allotment Status  14th February 2024    Credit of Shares to the Demat Account  15th February 2024   Entero Healthcare Solutions Limited IPO Listing Date  16th February 2024    Entero Healthcare Solutions Limited IPO Face Value  ₹10 per share   Entero Healthcare Solutions Limited IPO Lot Size  11 shares    Entero Healthcare Solutions Limited IPO Issue Size  Approx ₹1,600 crore   Entero Healthcare Solutions Limited IPO to be Listed on  BSE, NSE    Entero Healthcare Solutions Limited IPO Price band  ₹1,195 – ₹1,258 per share        Financial snapshot     Particulars  FY21  FY22  FY23  Q2FY24    Revenue  ₹ 1779 crore  ₹ 2522 crore  ₹ 3300 crore  ₹ 1895 crore    Net Profit  ₹ -15.3 crore  ₹ -29.4 crore  ₹ -11.1crore  ₹ 11.6 crore               Here’s a quick look at Entero Healthcare Solutions Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Operates in a large and fragmented Indian healthcare products distribution market with ~65,000 distributors as of 31 March 2023 and expects to benefit from market consolidation.  It is one of India’s largest and fastest-growing healthcare product distribution platforms.  Track record of inorganic expansion and integration through acquiring 34 entities in the healthcare products distribution industry since FY18.  Differentiated business model offering comprehensive and integrated commercial and supply chain solutions.  Proprietary technology platforms such as Entero ERP system, data warehouse and business intelligence tool (Teqtic), and CRM application along with 7,700 active users on its app - Entero Direct as of 30 September 2023.   Risks and threats   Has consistently experienced negative cash flows from investing, operating and financing activities between FY21 and Q2 FY24.  Has experienced losses in FY21, FY22, and FY23.  High working capital requirements amounting to ₹782 crore as of 30 September 2023.  Total outstanding borrowings of ₹489 crore as of 30 September 2023.  Subject to credit risk with trade receivables amounting to ₹630 crore as of 30 September 2023.  Faces risks related to health epidemics and pandemics.  Changes in prescription drug pricing could adversely affect its operations and financial performance.            Entero Healthcare Solutions Limited IPO details  |Entero Healthcare Solutions Limited IPO date  According to the offer document filed by the company with the SEBI, the Entero Healthcare Solutions IPO’s opening date – in other words, the Entero Healthcare Solutions IPO launch date – will be 9th February 2024. The Entero Healthcare Solutions IPO closing date is 13th February 2024. After this, investors will be updated about the allotment status on 14th February 2024.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 15th February 2024. The Entero Healthcare Solutions IPO listing date is 16th February 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Entero Healthcare Solutions Limited IPO Price Band  The IPO is an offer for sale as well as a fresh issue. The Entero Healthcare Solutions IPO price band has been set between ₹1,195 and ₹1,258 per share. Interested investors can choose a price within this band to apply for the IPO.  The Entero Healthcare Solutions IPO listing price will be determined on 16th February 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  |Entero Healthcare Solutions Limited IPO Lot size  The Entero Healthcare Solutions IPO details have been declared. The Entero Healthcare Solutions IPO lot size is set at 11 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Entero Healthcare Solutions IPO issue size is approx ₹1,600 crore.           How to pre-apply for the Entero Healthcare Solutions Limited IPO?  You can pre-apply for the Entero Healthcare Solutions Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Entero Healthcare Solutions Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Entero Healthcare Solutions Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Entero Healthcare Solutions Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Entero Healthcare Solutions Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Entero Healthcare Solutions Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Entero Healthcare Solutions LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Entero Healthcare Solutions Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Entero Healthcare Solutions Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Entero Healthcare Solutions Limited IPO  To apply for the Entero Healthcare Solutions Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Entero Healthcare Solutions Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Entero Healthcare Solutions Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.