Entero Healthcare IPO: Check issue size, price band, other details

Haryana-based healthcare products distributor Entero Healthcare Solutions is set to launch its public issue. The company has fixed a price range of ₹1,195-1,258 per share for its ₹1,600-crore initial public offering (IPO). The IPO is scheduled for subscription from February 9 to 13, with bidding for the anchor book taking place on February 8, 2024.

This marks the fifth public issue this month following Apeejay Surrendra Park Hotels, Rashi Peripherals, Jana Small Finance Bank, and Capital Small Finance Bank.

Entero Healthcare Solutions aims to raise ₹1,000 crore through a fresh issue component and ₹600 crore through the offer-for-sale (OFS) route, at the upper price band.

OrbiMed Asia III Mauritius, a corporate promoter holding 38.15 lakh shares, will be the primary selling shareholder in the OFS. Individual promoters Prabhat Agrawal and Prem Sethi will offload 4.7 lakh and 3.13 lakh equity shares, respectively, in the OFS. Additionally, 1.7 lakh shares of the total OFS of 47.69 lakh shares will be sold by 16 other shareholders.

Entero Healthcare Solutions has allocated ₹8 crore worth of shares for its employees, who will receive them at a discounted price of ₹119 per share.

Regarding investor reservations, up to 75% of the net offer (excluding employee reservations) is reserved for qualified institutional buyers, 15% for high net-worth individuals, and the remaining 10% for retail investors.

The minimum bid quantity is 11 equity shares, with bids allowed in multiples of 11 shares thereafter. Therefore, the minimum application size for retail investors is ₹13,838 for 11 shares, with a maximum investment of ₹1,93,732 for 154 equity shares in the IPO.

Entero Healthcare Solutions plans to utilise ₹142.5 crore of the net fresh issue proceeds for debt repayment and ₹480 crore for long-term working capital requirements. The remaining funds will be allocated for inorganic growth initiatives through acquisitions and general corporate purposes.

On the financial front, the company says it 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 corresponding period last fiscal year. Revenue from operations during the same period increased 19.7% to ₹1,895.5 crore.

In the fiscal year 2022-23, it reported a loss of ₹11.1 crore, narrowing from ₹29.4 crore in the previous year, while revenue grew 30.85% to ₹3,300 crore.

Entero Healthcare Solutions, which claims to be one of the top three healthcare products distributors in India in terms of revenue in FY22, will finalise the basis of allotment of IPO shares by February 14, with shares credited to eligible investors' demat accounts by February 15. Trading in its equity shares is expected to start on the BSE and the NSE from February 16.