Entero Healthcare Solutions opened its subscription to retail investors on February 09. The book-built issue will raise Rs 1,600 crore in total, through fresh issue and offer for sale.
The company has set the IPO’s price band at Rs 1,195 – 1,258 per equity share. The issue will close on February 13 and will be listed on both the bourses, NSE and BSE.
The company will be offering 0.79 crore shares through the fresh issue, raising Rs 1,000 crore. It will raise Rs 600 crore by offering 0.48 crore shares through the offer for sale. A minimum of 11 shares needs to be bided by a retail investor, summing to Rs 13,838.
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Entero raised Rs 716.40 crore from the anchor investors by offering 5.7 million shares.
About the company, Entero distributes healthcare products across the country through its tech platform to pharmacies, hospitals, and clinics.
On the financial side of the business, the company reported net profit once in the last four quarters, taking July to September as the last reported quarter. In the third quarter of FY24, the company reported a net profit of Rs 11.64 crore against a loss of Rs 11.10 crore in the previous quarter of the same financial year.
According to the company, the net proceeds raised from the issue will be used for funding long-term working capex, payment of borrowings, acquisitions, and other general purpose.
“The company’s pan-India approach to acquiring and integrating smaller distributors has increased its geographic reach and has grown its customer base. The company uses growth strategies such as product portfolio expansion, increased customer reach, improved service levels, and technology-based solutions to boost its market share. The company replicates this approach while expanding into new geographies and continuously attracting collaborations from the distributors,” said StoxBox in an IPO note.
According to the note, the company has a record of sustained consolidated revenue from operation, growing at 36.2% during FY21-23. Looking at the industry growth, the company might grow from 8%-10% in FY23 to 20%-30% by FY28.
“The issue is valued at a P/E of 111.2x on the upper price band based on FY24E earnings, which we feel is fairly valued in comparison to its peers. We, therefore, recommend a SUBSCRIBE rating for the issue,” concluded the note.
ICICI Securities, Dam Capital Advisors, Jefferies India, Jm Financial, and SBI Capital Markets were the book-running lead managers to the issue. Come from Sports betting site VPbet