Entero Healthcare IPO Subscribed 1.53 Times On Final Day
The IPO was subscribed 1.53 times as of 7 p.m. on Tuesday.
Entero Healthcare Solutions Ltd.'s IPO was subscribed 1.53 times on the final day.
It was subscribed 10% on day 1 and 19% on day 2.
The price band was fixed at Rs 1,195–1,258 per share. The initial public offering was launched to raise up to Rs 1,600 crore.
The IPO comprises a fresh issue of Rs 1,000 crore and an offer for sale of 47.7 lakh shares, which would be around Rs 600 crore. The IPO has a minimum application lot size of 11 shares.
Of the total IPO size, 75% is reserved for qualified institutional buyers, 10% for retail individual investors, and the remaining 15% is to be allotted to non-institutional investors.
The company has raised Rs 716.4 crore from anchor investors. It has allocated 56.9 lakh equity shares to 25 anchor investors at Rs 1,258 apiece, which is also the upper end of the price band. Capital Group-backed Smallcap World Fund got the highest allocation of 23.19%, while the Government of Singapore secured 20.72%. Pioneer Investment Fund (6%), Carmignac Portfolio (5.93%), Monetary Authority of Singapore (2.55%), Allianz Global (4.18%) and Jupiter India (4.18%) are among the other marquee investors in the pre-IPO round fundraising.
The leading book managers for the anchor round were ICICI Securities Ltd., DAM Capital Advisers Ltd., Jefferies India Pvt., JM Financial Ltd., and SBI Capital Markets Ltd.
Issue Details
Issue opens: Feb. 9.
Issue closes: Feb. 13.
Total issue size: Rs 1,600 crore.
Face value: Rs 10 apiece.
Fixed price band: Rs 1,195–1,258 per share.
Minimum lot size: 11 shares.
Listing: NSE and BSE.
Use Of Proceeds
The net proceeds from the issue will be utilised towards:
Repayment or prepayment, in full or part, of certain borrowings availed by the company.
Funding of long-term working capital requirements of the company and its subsidiaries during the next two financial years.
Pursuing inorganic growth initiatives through acquisitions.
General corporate purposes.
Business
Incorporated in 2018, the company was among the top three healthcare product distributors in India in terms of revenue in fiscal 2022, according to Crisil.
Entero provides healthcare product manufacturers access to a large number of pharmacies, hospitals and clinics throughout the country, through a single organised, pan-India, technology-driven and integrated healthcare products distribution platform and by setting up warehouses and logistics services.
It has a nationwide presence of 77 distribution warehouses across 38 cities, and a customer base of over 73,700 pharmacies and 2,800 hospitals spread across 501 districts as of Sept. 30, 2023.
For the pharmacies, hospitals and clinics associated with the company, the platform acts as a one-stop solution for their procurement needs.
Subscription Status: Day 3
The IPO was subscribed 1.53 times as of 7 p.m. on Tuesday.
Institutional investors: 2.28 times.
Non-institutional investors: 0.22 times.
Retail investors: 1.33 times.
Employee Reserved: 1.25 times.
