Entero Healthcare Solutions IPO: Retail Portion Booked 1.33 Times, QIB Portion Subscribed 2.28 Times

On February 9, 2024, Entero Healthcare Solutions, a distributor of healthcare products, launched its initial public offering (IPO). The IPO is scheduled to close on February 13, 2024, with Entero Healthcare Solutions setting the price band for its IPO between Rs 1195 to Rs 1258 per share, having a face value of Rs 10.

About the company

Established in 2018, Entero Healthcare Solutions Limited operates as a distributor of healthcare products in India. The company utilizes a technology-driven platform to offer healthcare product distribution services to pharmacies, hospitals, and clinics across the country.

As of March 31, 2023, Entero Healthcare Solutions has established partnerships with more than 1,900 healthcare product manufacturers, granting them access to a comprehensive range of over 64,500 product stock-keeping units.

IPO subscription status

At 4:51 PM, the issue was subscribed 1.53 times as against 71.50 lakh shares. The retail portion was booked 1.33 times or 17.38 lakh shares as against 13.07 lakh shares. The Non-Institutional Investors (NII) portion was booked 22 percent while the Qualified Institutional Buyers (QIBs) portion was subscribed 2.28 times as against 38.08 lakh shares.

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Price Band

The company has set the price band for its IPO between Rs 1195 to Rs 1258 per share

Issue Size

The company has set a fixed price band for its shares, ranging from Rs 1,195 to Rs 1,258 each. Interested investors have the opportunity to bid for a minimum of 11 equity shares, with the option to bid in multiples thereafter.

IPO Reserve Portion

• Qualified institutional buyers (QIB): Not less than 75% of the shares
• Non-institutional Institutional Investors (NII): Not more than 15%
• Retail investors: Not more than 10% of the offer

The company has reserved equity shares worth up to Rs 8 crore for employees. Eligible employees participating in the reserved portion are being offered a discount of Rs 119 per equity share.

Objectives of the issue

The company plans to utilize the funds generated from the new offering for the following purposes: supporting the company’s long-term working capital requirements for Fiscal Years 2025 and 2026, undertaking inorganic growth initiatives such as acquisitions, and addressing general corporate needs. There is a possibility of fully or partially repaying certain borrowings that the company has undertaken.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment decisions.