- The issue will open for subscription during February 9-13
- The bidding for anchor book will take place for a day on February 8
- Bids can be made for a minimum of 11 Equity Shares and in multiples of 11 Equity Shares thereafter
- The firm earned ₹25,000 million in operational income in just four years of operation, making it the fastest-growing distributor of healthcare products in India during the Financial Years 2019 and 2022
NE BUSINESS BUREAU
AHMEDABAD, FEB 8
Haryana-based Entero Healthcare Solutions Limited on Wednesday announced it will float ₹1,600-crore IPO. The IPO price band has been fixed in the range of ₹1,195 to ₹1,258 per equity share of the face value of ₹10.
The IPO date of subscription is scheduled for Friday, February 9, and will close on Tuesday, February 13. The allocation to anchor investors for the IPO is scheduled to take place on Thursday, February 8.
The IPO lot size is 11 equity shares and in multiples of 11 equity shares thereafter.
The healthcare products distributor is planning to raise ₹1,000 crore through a fresh issue component and offer-for-sale (OFS) of up to 4,769,475 equity shares by the promoters and other investors aggregating up to ₹600 crore, at the upper price band.
The company has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors. The employee portion has been reserved equity shares worth up to ₹8 crore, and a discount of ₹119 per equity share is being offered to eligible employees bidding in the employee reservation portion.
The promoters selling shareholders are Prabhat Agrawal, Prem Sethi, and OrbiMed Asia III Mauritius Limited. The biggest shareholder to sell is OrbiMed Asia III Mauritius Limited, which is offloading 3,815,580 equity shares. Prabhat Agrawal and Prem Sethi will sell 470,210 and 313,472 equity shares, respectively. Additional shareholders that are selling their shares include Novacare Drug Specialities Private Limited, which is selling up to 42,250 equity shares, and KE Prakash, who is selling up to 39,610 equity shares.
Prabhat Agrawal, Managing Director and CEO, Entero Healthcare Solutions Limited, said, “The company intends to use the net proceeds from the fresh offering to finance the following goals: financing the company’s long-term working capital needs for Fiscal Years 2025 and 2026; pursuing inorganic growth initiatives through acquisitions; and general corporate purposes. Repayment or prepayment of certain borrowings that the company has taken out may be done in full or in part.”
While 81,400 retail pharmacies are catering to 3,000-plus manufacturers, real consolidation can happen in India which is facing fragmentation of the supply chain amidst pharma products also having short shelf life, Agrawal said.
Describing the Pharma market as being worth $33.2 billion with annual growth rate of 12%, he said EHSL has a team which identifies growth and acquisition opportunities in the market.
According to the CRISIL Report, the company generated an operating income of ₹25,220.65 million in the Financial Year 2022 and is ranked among the top three distributors of healthcare products in India in terms of sales. In addition, the firm earned ₹25,000 million in operational income in just four years of operation, making it the fastest-growing distributor of healthcare products in India during the Financial Years 2019 and 2022.
Entero Healthcare Solutions shares are likely to be listed on BSE and NSE on Friday, February 16.
The Entero Healthcare Solutions IPO’s book running lead managers are ICICI Securities Limited, Dam Capital Advisors Ltd (formerly IDFC Securities Ltd), Jefferies India Private Limited, JM Financial Limited, and SBI Capital Markets Limited. The issue’s registrar is Link Intime India Private Ltd.
