Entero Healthcare Solutions IPO to Open: The IPO of Haryana based company Entero Healthcare Solutions is opening this week on 9th February. The size of the IPO is Rs 1600 crore. The company has fixed the price band for this at Rs 1195-1258 per share. This IPO will remain open for subscription till 13 February. Apart from issuing fresh equity shares, this also includes OFS. This IPO will open for anchor investors on 8th February only. This will be the 5th IPO of the month of February.
About IPO
Entero Healthcare Solutions plans to raise Rs 1600 crore from the market through its IPO. In this, fresh equity shares of Rs 1000 will be issued. This includes OFS of Rs 600 crore. Corporate promoter OrbiMed Asia III Mauritius will be the largest selling shareholder in the OFS with 38.15 lakh shares. OrbiMed, part of the US-based healthcare focused investment firm, holds 57.27 percent stake in Entero Healthcare. Individual promoters Prabhat Aggarwal and Prem Sethi will sell 4.7 lakh and 3.13 lakh equity shares in the OFS, while the remaining 1.7 lakh shares out of the total OFS of 47.69 lakh shares will be sold by the remaining 16 shareholders.
how much reserve for whom
In the IPO of Entero Healthcare Solutions, 75 percent shares will be reserved for Qualified Institutional Buyers (QIB). 15 percent will be reserved for non-institutional investors (NII) and 10 percent for retained investors. The company has reserved shares worth Rs 8 crore for its employees and they will get a discount of Rs 119 per share on the final offer price.
There will be 11 equity shares in 1 lot. That means it will be necessary to invest at least Rs 13838 for 1 lot. Whereas investors can invest Rs 1,93,732 for a maximum of 154 equity shares.
Where will the funds be used
The company will use the proceeds from the IPO to finance its long-term working capital requirements for financial years 2025 and 2026. Apart from this, the fund will also be used to pursue inorganic growth through acquisitions and for general corporate needs. The company will use some amount to repay the loan.
The book running lead managers of Entero Healthcare Solutions IPO are ICICI Securities Ltd., Dam Capital Advisors Ltd. (formerly IDFC Securities Ltd.), Jefferies India Pvt. Ltd., JM Financial Ltd. and SBI Capital Markets Ltd. The registrar of the issue is Link Intime India Private Limited.
about the company
According to the CRISIL report, the company had achieved operating income of Rs 25,220.65 million in FY 2022 and is one of the top 3 distributors of healthcare products in India in terms of sales. Furthermore, the firm achieved an operating income of Rs 25,000 million in just 4 years of operation, making it the fastest growing distributor of healthcare products in India during FY 2019 and 2022. Founded by Prabhat Aggarwal and Prem Sethi, the company has built a pan-India, tech-driven and integrated healthcare product distribution platform with 77 warehouses across the country for multiple customers in the pharmacies, hospitals and clinics sectors.