The initial public offering (IPO) of Entero Healthcare Solutions will open for public bidding on Friday, February 9, 2023. The healthcare product distributor will be offering shares in the range of Rs 1,195-1,258 apiece.
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Investors can bid for a minimum of 11 equity shares and its multiples thereafter. Bidding for the issue will conclude on Tuesday, February 13.
Entero Healthcare Solutions, incorporated in 2018, is a distributor of healthcare products in India. The company’s technology-driven platform offers healthcare product distribution services to pharmacies, hospitals, and clinics throughout India. The IPO of Entero Healthcare Solutions would include a fresh share sale of Rs 1,000 crore. The promoters- Orbimed Asia III Mauritius, Prabhat Agrawal and Prem Sethi- and a few shareholders of the company will offload up to 47,69,475 equity shares in an offer-for-sale (OFS), amounting to Rs 600 crore at the upper end of the price band.
The company, in consultation with its BRLMs, reserved shares worth Rs 8 crore for its eligible employees. The interested eligible employees will get a discount of Rs 119 per share during the bidding process. Anchor book for the issue would open on Thursday, February 8, 2023.
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The net proceeds from the fresh issue shall be utilised towards repayment/prepayment, in full or part, of certain borrowings availed of by the company and its subsidiaries. Besides, it will be used for funding the long term working capital requirements and pursuing inorganic growth initiatives through acquisitions.
Entero Healthcare Solutions has relationships with 1,900 healthcare product manufacturers, giving it access to over 64,500 product stock-keeping units as of March 31, 2023. The company has 73 warehouses in 37 cities across 19 states and union territories, and its customer base includes over 81,400 pharmacies and 3,400 hospitals in 495 districts.
The company has reserved 75 per cent of the net issue for the qualified institutional bidders, while 15 per cent of net offer will be allocated to non-institutional investors (NIIs). The remaining 10 per cent of the IPO shares will be reserved for retail investors.
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ICICI Securities, DAM Capital Advisors (IDFC Securities), Jefferies India, JM Financial and SBI Capital Markets are the book running lead managers of the Entero Healthcare Solutions IPO, while Link Intime India is the registrar for the issue. Shares of the company are likely to be listed on February 16, Friday on BSE and NSE.
