Entero Healthcare Solutions IPO ends with 1.53x subscription

Published on Feb 14, 2024 16:31

The initial public offer (IPO) of Entero Healthcare Solutions received 1,09,49,884 bids for shares as against 71,50,100 shares on offer. The issue was subscribed 1.53 times.

The Qualified Institutional Buyers (QIBs) category was subscribed 2.28 times. The Retail Individual Investors (RIIs) category was subscribed 1.33 times. The Non Institutional Investors (NIIs) category was subscribed 0.22 times.

The issue opened for bidding on 9 February 2024 and it closed on 13 February 2024. The price band of the IPO was fixed at Rs 1,195 to 1,258 per share.

The offer comprises fresh issue of equity shares aggregating up to Rs 1,000 crore and offer for sale of up to 47,69,475 equity shares.

Out of the proceeds of fresh issue, Rs 142.5 crore will be used for repayment and prepayment of certain borrowings, Rs 480 crore for funding of long-term working capital requirements. The remaining amount is to be used for pursuing inorganic growth initiatives and general corporate purposes.

The promoter shareholding would decline to 52.44% post-IPO from 77.11% pre-IPO.

Ahead of the IPO, Entero Healthcare Solutions on 8 February 2024 raised Rs 716.39 crore from anchor investors. The board allotted 56.94 lakh shares at Rs 1,258 each to 25 anchor investors.

Incorporated in 2018, Entero Healthcare Solutions is a distributor of healthcare products in India. The company�s technology-driven platform provides healthcare product distribution services to pharmacies, hospitals, and clinics throughout India.

The company is among the top three healthcare products distributors in India in terms of revenue in financial year 2022. Further, it achieved the fastest scale-up of operations among healthcare products distributors in India between financial years 2019 to 2022.

The firm reported a net profit of Rs 14.17 crore and sales of Rs 2,013.38 crore for the six months ended on 30 September 2023.