Entero Healthcare makes a lacklustre debut, shares list at 2% discount to IPO price
Upstox
3 min read • Updated: February 16, 2024, 11:47 AM
Summary
The Entero Healthcare Solutions IPO was subscribed by a total of 1.53 times during the five-day subscription period from February 9-13.
Shares of Entero Healthcare Solutions Ltd made a lacklustre debut on Friday, February 15, with the stock listing at a discount of more than 2% to its IPO price.
The Entero Healthcare stock listed at ₹1,228.7 apiece on the National Stock Exchange of India (NSE), down 2.3% from its initial public offering (IPO) price of ₹1,258. On BSE, the stock opened the trade at ₹1,245, down 1% from the issue price.
Entero Healthcare shares dropped nearly 5% after listing. At 10:54 AM, the stock was trading 4.77% lower at ₹1,198.05 apiece on NSE. Shares of Entero Healthcare Ltd were trading at ₹1,200 apiece, down 4.61%, on BSE.
Entero Healthcare IPO subscription, price band and issue size
The Entero Healthcare Solutions IPO was subscribed by a total of 1.53 times during the five-day subscription period from February 9-13.
The category reserved for qualified institutional buyers (QIBs) was oversubscribed by 2.28 times. The retail investors’ portion saw a subscription of 1.33 times, while non-institutional investors’ category was subscribed just 0.22 times.
The company had set a price band of ₹1,195-1,258 per equity share for the IPO. Bids were made for a minimum of 11 equity shares and in multiples of 11 thereafter.
The public issue comprised fresh issue of equity shares of face value of ₹10 each amounting to ₹1,000 crore and an offer for sale (OFS) of up to 4.8 million equity shares aggregating to around ₹600 crore.
OrbiMed Asia III Mauritius Ltd was the largest selling shareholder, offloading 3.8 million equity shares in Entero Healthcare. Other key shareholders who offloaded their holdings included company’s co-founders Prabhat Agrawal and Prem Sethi who sold 0.47 million and 0.31 million equity shares, respectively.
The amount raised through Entero Healthcare IPO will be used by the company for repayment and pre-payment, in full or part, of certain debts. The company would also use a portion of the IPO proceeds for funding long-term working capital requirements.
Entero’s MD Prabhat Agrawal had also informed earlier that almost 35% of the overall IPO fund would likely be either utilised towards inorganic acquisitions or general corporate purposes.
About Entero Healthcare Solutions
Incorporated in 2018, Entero Healthcare Solutions is one of India’s largest and fastest growing healthcare products distribution platforms. The company says that it is among the top three healthcare products distributors in India and has a wide network reach with retail pharmacies.
Entero offers pharmaceuticals and other healthcare products to more than 81,400 retail pharmacies and healthcare practitioners across 495 districts in India. Its portfolio includes more than 64,500 SKUs from more than 1,900 pharma companies.
The company is a leading supplier for more than 3,400 hospitals across India. Entero Healthcare also markets its private label products under the brand name ‘Entero Surgicals’. Its portfolio includes monitoring devices, nursing products, rehabilitation products and consumables.
Entero Healthcare’s net revenue stood at nearly ₹3,305 crore in FY23, up 31% from ₹2,526.5 crore in FY22. However, the company continued to stay in the red, posting a net loss of ₹11.56 crore during FY23 compared with a loss of almost ₹30 crore in FY22.
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