Entero Healthcare Solutions, a company based in Haryana, is gearing up for its Rs 1,600-crore IPO, setting a price range of Rs 1,195-1,258 per share. Opening for subscription from February 9 to 13, the IPO marks a significant move in the market, attracting investor attention.
Let us explore this IPO in detail.
Entero HealthCare Solutions IPO: Key highlights
- Entero Healthcare sets IPO price band at Rs 1,195-1,258 per share.
- IPO subscriptions open from Feb 9 to 13, and anchor book bidding is on Feb 8.
- Plans to raise Rs 1,000 crore via fresh issue, Rs 600 crore via offer-for-sale.
- Corporate promoter OrbiMed to offload 38.15 lakh shares.
- Reserved Rs 8 crore worth of shares for employees at a discount.
- 75% of the net offer is for institutional buyers, 15% is for high-net-worth individuals, and 10% is for retail investors.
- Minimum bid: 11 shares; Retail investors’ max investment: Rs 1,93,732.
- Intends to repay debts, bolster working capital, and pursue growth initiatives with IPO proceeds.
- Turned profitable in FY24 H1, with revenue growth of 19.7%.
- Final IPO allotment by Feb 14, trading to commence on BSE and NSE from Feb 16.
Entero HealthCare Solutions IPO Date
Subscription for the IPO will be open from February 9 to 13, while bidding for the anchor book will happen on February 8.
|Entero Healthcare Solutions IPO Price Band
|Rs 1,195-1,258 per share
|Entero Healthcare Solutions IPO Date
|February 9 to 13, 2024
|Entero Healthcare Solutions IPO Lot Size
|Minimum bid for 11 shares, multiples thereafter
This table summarises the key details of the Entero Healthcare Solutions IPO.
This IPO will be the fifth one this month, following Apeejay Surrendra Park Hotels, Rashi Peripherals, Jana Small Finance Bank, and Capital Small Finance Bank.
Entero Healthcare Solutions plans to raise Rs 1,000 crore through a fresh issue and Rs 600 crore through the offer-for-sale (OFS) route at the upper price band.
Stakeholders in Entero Healthcare Solutions’ OFS and Employee Benefit Scheme
The largest selling shareholder in the OFS will be corporate promoter OrbiMed Asia III Mauritius, which holds 38.15 lakh shares. OrbiMed holds 57.27 percent shares in Entero.
Individual promoters Prabhat Agrawal and Prem Sethi will be selling 4.7 lakh and 3.13 lakh equity shares in the OFS, respectively.
Entero Healthcare Solutions has set aside Rs 8 crore worth of shares for its employees, which they will get at a discount of Rs 119 per share to the final offer price.
Qualified institutional buyers will have 75 percent of the net offer reserved, while 15 percent is for high net-worth individuals and the remaining 10 percent for retail investors.
Investors can bid for a minimum of 11 equity shares and in multiples of 11 shares thereafter. The minimum application size for retail investors will be Rs 13,838 for 11 shares.
Entero HealthCare Solutions IPO Objectives
The company plans to use Rs 142.5 crore of the net fresh issue proceeds for repaying debts and Rs 480 crore for long-term working capital requirements.
The rest of the fresh issue money will go towards inorganic growth initiatives through acquisitions and general corporate purposes.
Financial Performace Overview
In the six months ended September FY24, Entero Healthcare Solutions became profitable with a net profit of Rs 11.64 crore. Revenue from operations during the same period increased by 19.7 percent to Rs 1,895.5 crore.
In the last financial year, 2022-23, it posted a loss of Rs 11.1 crore, narrowing from Rs 29.4 crore in the previous year. Revenue from operations grew by 30.85 percent to Rs 3,300 crore during the same period.
The basis of the allotment of IPO shares will be finalised by February 14, and the shares will be credited to eligible investors’ demat accounts by February 15.
Trading in its equity shares is expected to start on the BSE and the NSE on February 16.
The Entero Healthcare Solutions IPO presents a lucrative investment opportunity with a clear roadmap for growth and expansion. Beyond its financial implications, the IPO signals the company’s ambition to solidify its position in the healthcare distribution sector.
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.