Entero Healthcare Solutions IPO

Entero Healthcare Solutions IPO

Entero Healthcare Solutions IPO consists of a fresh issue of shares worth INR 1000 crores and an offer to sell 85.97 crores of existing equity shares aggregating to INR 600 crores. The company aims to repay debt, fund working capital, pursue acquisitions, and ensure corporate sustainability.

Entero Healthcare Solutions Limited IPO – Important Details 

Entero Healthcare Solutions IPO DateFebruary 9, 2024 to February 13, 2024
Entero Healthcare Solutions IPO Listing DateFebruary 16, 2024
Entero Healthcare Solutions IPO PriceINR 1195-1258 per share
Entero Healthcare Solutions IPO Lot Size11 Shares
Entero Healthcare Solutions IPO Total Issue SizeApprox INR 600 crores
Entero Healthcare Solutions IPO Basis of AllotmentFebruary 14, 2024
Entero Healthcare Solutions IPO Initiation of RefundsFebruary 15, 2024
Entero Healthcare Solutions IPO Credit of Shares to DematFebruary 15, 2024
Entero Healthcare Solutions IPO Issue TypeBook Built Issue IPO
Entero Healthcare Solutions IPO Listing AtBSE, NSE

Entero Healthcare Solutions Ltd IPO – Company Profile 

Entero Healthcare Solutions, positioned among India’s top three healthcare product distributors, recorded an operating income of INR 2,522.065 crores in FY2022. Their rapid growth culminated in reaching INR 2500 crores within four years.

Entero Healthcare Solutions offers manufacturers access to pharmacies, hospitals, and clinics through a tech-driven distribution platform. With 73 warehouses and strong relationships, they ensure wide product availability, benefiting a diverse customer base. 

They ensure pharmacies, hospitals, and clinics access diverse products through their distribution infrastructure and manufacturer partnerships. They are servicing 81,400 retail and 3,400 hospital customers in FY2023, with 1,900+ manufacturers offering 64,500+ SKUs. 

Entero Healthcare Solutions Limited IPO – Fundamental Analysis 

Entero Healthcare Solutions’ financials reveal significant revenue growth alongside persistent losses ahead of its IPO, highlighting scalability potential but profitability challenges. This presents a high-risk investment opportunity requiring careful consideration of the company’s ability to achieve future profitability.

Revenue Growth:

The company has demonstrated significant revenue growth, from ₹17,797.37 million in 2021 to ₹33,002.07 million in 2023. This indicates a strong market demand for its healthcare solutions and an expanding business scale.

Equity Growth:

Equity has modestly increased from ₹4,870.60 million in 2021 to ₹5,976.61 million in 2023, suggesting some level of investor confidence and potential equity financing to support growth.

Profitability Challenges:

Despite growing revenues, the company has continued to report losses, with the Profit and Loss After Tax showing a negative trend, from -₹153.54 million in 2021 to -₹111.04 million in 2023. This indicates ongoing challenges in achieving operational profitability.

Return on Net Worth (RoNW):

The negative RoNW percentages over the years highlight the company’s struggle to generate profits from shareholders’ equity, reflecting its difficulties in leveraging its financial base for profitable returns.

Net Asset Value (NAV) per Equity Share:

The NAV per equity share has decreased from ₹165.17 in 2021 to ₹157.08 in 2023, indicating a slight decline in the intrinsic value of the company’s shares.

Diluted EPS:

The Diluted EPS remains negative, moving from -₹5.29 in 2021 to -₹3.10 in 2023, underscoring the company’s ongoing losses per share.

Asset and Liability Management:

Total assets have grown positively, but so have total liabilities, reflecting increased borrowing or other financial obligations as the company expands. The lack of a specific Debt Equity Ratio in the data provided leaves a gap in understanding the company’s leverage situation fully.

Entero Healthcare Solutions IPO Financial Information 

ParticularAs of 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue (₹ in Million)17,797.3725,220.6533,002.07
Equity (₹ in Million)4,870.605,632.165,976.61
Expenses (₹ in Million)17,945.0625,463.5933,094.09
Profit and Loss After Tax (₹ in Million)(153.54)(294.39(111.04)
RoNW (%)(3.15%)(5.23%)(1.86%)
NAV per Equity Share (₹)165.17155.42157.08
Diluted EPS only (₹)(5.29)(9.22)(3.10)
Total Assets (in millions)8,337.8711,259.8313,087.27
Total Liabilities (in millions)3,467.275,627.677,110.66

Entero Healthcare Solutions Ltd IPO Peer Comparison 

Entero Healthcare Solutions Ltd exhibits a challenging financial landscape with a total income of ₹33,057.21 million and a negative EPS of ₹(3.10), sharply contrasting with MedPlus Health Services Limited, which reports a healthier financial status, including a positive EPS of ₹4.17 and a RoNW of 3.36%.

CompanyTotal Income (₹ in a million)Face Value per Equity Share (₹)P/EEPS (Basic) (₹)EPS (Diluted) (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
EnteroHealthcareSolutions Limited33,057.2110NA(3.10)(3.10)(1.86)157.08
MedPlusHealthServices Limited46,036.542216.074.174.173.36124.93

Entero Healthcare Solutions Ltd IPO Objective 

The main objective of Entero Healthcare Solutions is to repay debt, fund working capital, pursue acquisitions, and ensure general corporate sustainability. 

  1. Repayment/prepayment, in whole or part, of certain borrowings availed of by the company and their subsidiaries: The company intends to utilize INR 123.667 crores from the Net Proceeds towards repayment/prepayment, in whole or in part of certain borrowings availed of by their company and their subsidiaries. The company aims to reduce debt, improve ratios, and expand. 
  1. Funding the long-term working capital requirements: The company proposes to utilize INR 600 crores from Net Proceeds for long-term working capital needs in FY 2025-26. This includes organic growth, purchasing working capital, GST payments, and maintaining balances with customers, vendors, and government authorities. 
  1. Pursuing inorganic growth initiatives through acquisitions: The company aims to pursue acquisitions to enhance scale, market position, and product portfolio with synergy benefits. Expanding into new geographic markets and adding complementary services to capture additional revenue opportunities and improve margin profile. 
  1. General corporate purposes: The company aims to deploy the balance funds towards the general corporate goals, including enhancing marketing capabilities, building brands, and meeting general corporate contingencies for business requirements. 

Entero Healthcare Solutions IPO Risks And Challenges 

Entero Healthcare Solutions’ risks include failure to realize acquisition benefits or identify expansion opportunities, supply chain inefficiencies and high working capital needs, which may adversely affect business operations, finances, and overall prospects.

  • Failure to realize benefits from acquisitions or identify expansion opportunities and delays in implementing growth strategies could adversely affect business, finances, operations, cash flows, and prospects. 
  • Inefficient operation, maintenance, or supply chain and distribution infrastructure expansion may hinder growth management. Difficulty in these areas could impede scalability and negatively affect overall business operations. 
  • High working capital requirements and substantial indebtedness pose risks to operations. The inability to maintain optimal working capital or necessary financing could adversely impact business operations.

Entero Healthcare Solutions Ltd IPO – Industry & Market Potential 

The Indian healthcare industry, comprising pharmaceuticals, hospitals, medical devices, diagnostics, and health insurance, grew at a 10-11% CAGR from 2017 to 2023, reaching ₹9.9 trillion. Projections anticipate a further 11-12% CAGR, reaching ₹16.5-17.5 trillion by 2028.

Pharmaceutical distribution is vital in India’s supply chain, primarily led by traditional local distributors. The market is steadily expanding, reaching ₹1.8 trillion in 2023, and is projected to grow at a 9-10% CAGR by 2028 due to increased healthcare awareness and rising chronic disease rates.

India’s retail pharmacy market, valued at ~₹2.3 trillion in 2023, offers diverse opportunities. Traditional and online pharmacies coexist, catering to customer preferences with discounts and convenience, fostering a dynamic and innovative market landscape. 

Entero Healthcare Solutions Limited IPO – Type of Offer 

Entero Healthcare Solutions plans a fresh issue of shares, seeking INR 1000 crores to augment the capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 85.97 crore existing shares.

  1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 1000 crores. The company aims to repay debt, fund working capital, pursue acquisitions, and ensure corporate sustainability. 
  2. Offer for sale: Entero Healthcare Solutions is offering to sell 85.97 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
Name of the promoter selling shareholderMaximum number of offered shares for sale (in millions)
Prabhat Agrawal534,082
Prem Seth353,302

Entero Healthcare Solutions IPO Offer Size

The offer size of Entero Healthcare Solutions is INR 1600 crores, including a fresh issue of shares totaling INR 1000 crores and the sale for INR 600 crores. The company aims to repay debt, fund working capital, pursue acquisitions, and ensure corporate sustainability.

Entero Healthcare Solutions IPO Allotment Structure

Entero Healthcare Solutions allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the eligible employees.

Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.

Eligible Employees: A portion of the issue is reserved for eligible employees.

How to apply for Entero Healthcare Solutions IPO?

To apply for the Entero Healthcare Solutions IPO through Alice Blue, you would typically follow these steps:

1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.

2. Check for IPO Details: Once your account is active, you can check for the Entero Healthcare Solutions IPO details in the IPO section of the Alice Blue platform.

3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

4. Submit the Application: Confirm all your details and submit your application.

 You can apply for Entero Healthcare Solutions Limited’s IPO at Alice Blue [M1] in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to check Entero Healthcare Solutions IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.

3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.

4. Select the Entero Healthcare Solutions IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Entero Healthcare Solutions IPO.

5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Entero Healthcare Solutions IPO:

Registrar’s Website: Visit the website of Link In Time India Private Limited’s website, the Entero Healthcare Solutions IPO registrar. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Entero Healthcare Solutions IPO Offer Registrar

The registrar for the Entero Healthcare Solutions IPO is Link In Time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

C-101, 1stfloor, 247 Park,

 Lal Bahadur Shastri Marg 

Vikhroli (West) 

Mumbai 400 083, 

Maharashtra, India 

Tel: +91 8108114949 

E-mail: [email protected] 

Website: www.linkintime.co.in 

Entero Healthcare Solutions IPO FAQs

1. What is the allotment date of the Entero Healthcare Solutions IPO?

The allotment date of the Entero Healthcare Solutions IPO is February 14, 2024. 

2. What is the price band of the Entero Healthcare Solutions IPO?

The price band of the shares issued by the company is INR 1195-1258 per share. 

3. What is the size of the Entero Healthcare Solutions IPO? 

Entero Healthcare Solutions IPO consists of a fresh issue of shares worth INR 1000 crores and an offer to sell 85.97 crores of existing equity shares. The company aims to repay debt, fund working capital, pursue acquisitions, and ensure corporate sustainability.

4. What is the listing date of the Entero Healthcare Solutions IPO?

The listing date of the Entero Healthcare Solutions IPO is February 16, 2024. 

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