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Entero Healthcare Solutions IPO is a book-built issue of Rs 1,600.00 crores. The issue is a combination of a fresh issue of 79,49,125 shares aggregating to Rs 1,000.00 crores and an offer for sale of 47,69,475 shares aggregating to Rs 600.00 crores.
Entero Healthcare Solutions IPO opens for subscription on February 9, 2024, and closes on February 13, 2024. The price band is set at ₹1195 to ₹1258 per share. The minimum lot size for an application is 11 Shares.
Company Summary
The Company was founded in 2018 by Prabhat Agrawal, Promoter, Managing Director, and Chief Executive Officer, and Prem Sethi, Promoter, Whole-time Director, and Chief Operating Officer, with the vision to create an organized, pan-India, technology-driven, and integrated healthcare products distribution platform that can add value to the entire healthcare ecosystem.
As of March 31, 2023, our 73 warehouses located across the country, last-mile delivery infrastructure, and relationships with pharmacies, hospitals, and clinics enable healthcare product manufacturers to make their products available to a wide range of customers.
Further, as of March 31, 2023, they have supply relationships with over 1,900 healthcare product manufacturers that give them access to over 64,500 product stock-keeping units (“SKUs”).
Their nationwide presence of 73 distribution warehouses located across 37 cities in 19 states and union territories, and a customer base of over 81,400 pharmacies and 3,400 hospitals spread across 495 districts, as of March 31, 2023.
Company Strengths
Their technology-driven, nationwide distribution network, relationships with over 1,900 healthcare product manufacturers that give them access to over 64,500 product SKUs, and experienced and professional management team, position them well to continue to grow the scale of their business in India and take advantage of the shift towards the organized Indian healthcare products distribution market.
Being among the top three healthcare product distributors in India in terms of revenue in Financial Year 2022, and reported an operating income of ₹25,220.65 million in Financial Year 2022.
Further, they also achieved the fastest scale-up of operations among healthcare products distributors in India (between Financial Year 2019 to Financial Year 2022), and reached ₹25,000 million of operating income within four years of operations.
During the Financial Years 2021, 2022, and 2023, their retail customers amounted to over 39,500, 64,200, and 81,400, respectively, and their hospital customers amounted to over 1,600, 2,500, and 3,400, respectively.
Company Financials
| Period Ended | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 1,308.73 | 1,125.98 | 833.79 |
| Revenue | 3,305.72 | 2,526.55 | 1,783.67 |
| Profit After Tax | -11.10 | -29.44 | -15.35 |
| Net Worth | 597.66 | 563.22 | 487.06 |
| Total Borrowing | 373.52 | 285.03 | 141.70 |
Amount in crore | |||
Objectives of the IPO
Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objects
- Repayment/prepayment, in full or part, of certain borrowings availed by the Company and their Subsidiaries.
- Funding the long term working capital requirements.
- Pursuing inorganic growth initiatives through acquisitions.
- General corporate purposes
Promoters of the company
The Promoters of the Company are Prabhat Agrawal, Prem Sethi, and OrbiMed Asia III Mauritius Limited. Further, Promoters hold an aggregate of 12,668,193 Equity Shares comprising 78.85% of their paid-up Equity Share capital and 503,229,742 CCPS
IPO details
| IPO Date | February 9, 2024 to February 13, 2024 |
| Listing Date | Friday, February 16, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹1195 to ₹1258 per share |
| Lot Size | 11 Shares |
| Total Issue Size | 12,718,600 shares (aggregating up to ₹1,600.00 Cr) |
| Fresh Issue | 7,949,125 shares (aggregating up to ₹1,000.00 Cr) |
| Offer for Sale | 4,769,475 shares of ₹10 (aggregating up to ₹600.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 11 | ₹13,838 |
| Retail (Max) | 14 | 154 | ₹193,732 |
| Small-HNI(Min) | 15 | 165 | ₹207,570 |
| small-HNI(Max) | 72 | 792 | ₹996,336 |
| Large-HNI (Min) | 73 | 803 | ₹1,010,174 |
Allotment Schedule
| Basis of Allotment | Wednesday, February 14, 2024 |
| Initiation of Refunds | Thursday, February 15, 2024 |
| Credit of Shares to Demat | Thursday, February 15, 2024 |
| Listing Date | Friday, February 16, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on February 13, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
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