Entero Healthcare Solutions IPO: Opens for subscription on 9 February, here are the key details

The Entero Healthcare Solutions IPO comprises fresh issue of equity shares worth ₹1,000 crore and an offer for sale of up to 4.8 million equity shares aggregating to around ₹600 crore. The company has set a price band of ₹1,195-1,258 per equity share.

Healthcare products distributor Entero Healthcare Solutions Ltd has become one of the latest companies to join the Indian IPO bandwagon. The ₹1,600-crore initial public offer is set to open for subscription this week.

If you are planning to invest in this public issue, read further to understand the finer details.

About the company

Incorporated in 2018, Entero Healthcare Solutions is one of India’s largest and fastest growing healthcare products distribution platforms. The company claims to be among the top three healthcare products distributors in India.

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 products from more than 1,900 pharma companies.

It is a supplier for more than 3,400 hospitals across India, including some of the biggest corporate hospital chains. Entero also sells private label products under the brand name ‘Entero Surgicals’ that mainly deals in monitoring devices, nursing products, rehabilitation products and consumables.

In 2022-23, Entero Healthcare reported net revenue of nearly ₹3,305 crore, up 31% from ₹2,526.5 crore in 2021-22. 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.

Enter Healthcare Solutions IPO: Offer size and price band

The Entero Healthcare Solutions IPO will be open for subscription from 9 February to 13 February.

The company has set a price band of ₹1,195-1,258 per equity share of face value of ₹10 each. Bids can be made for a minimum of 11 equity shares and in multiples of 11 thereafter.

The IPO comprises fresh issue of equity shares worth ₹1,000 crore and an offer for sale of up to 4.8 million equity shares aggregating to around ₹600 crore. OrbiMed Asia III Mauritius Ltd will be the largest selling shareholder, planning to offload 3.8 million equity shares. Other key shareholders who will offload their holdings include company’s co-founders Prabhat Agrawal and Prem Sethi who would sell 0.47 million and 0.31 million equity shares, respectively.

Entero Healthcare intends to use the proceeds of the fresh issue towards funding the repayment/prepayment, in full or part, of certain borrowings availed of by the company and also towards funding long-term working capital requirements. According to the company’ almost 35% of the overall IPO capital is likely to be either utilised towards inorganic acquisitions or general corporate purposes.

The company has also reserved at least 75% of the shares in the IPO for qualified institutional buyers (QIB), 15% for non-institutional investors (NII) and 10% for retail investors. A portion has also been reserved for employees with equity shares worth up to ₹8 crore at a discount of ₹119 per share.

Important dates

Once the bidding closes on 13 February, the basis of allotment of shares is likely to be finalised on 14 February. In case of non-allotment of shares due to huge oversubscription, refunds would be initiated on 15 February.

Those who would be allotted shares can expect them to be credited in their demat accounts on 15 February as the stock is likely to list on both BSE and the National Stock Exchange on 16 February.