Entero Healthcare Solutions IPO opens on February 9, price band to be announced tomorrow

Entero Healthcare Solutions IPO opens on February 9

OrbiMed-backed healthcare products distributor Entero Healthcare Solutions has decided to open its initial public offering on February 9. The price band for the offer will be announced on February 6.

The anchor book of the public issue will be opened for a day on February 8, while the offer will be closing on February 13.

The IPO is a mix of a fresh issue of Rs 1,000 crore worth of equity shares, and an offer-for-sale (OFS) of 47,69,475 equity shares by several existing shareholders including promoters.

Individual promoters Prabhat Agrawal, and Prem Sethi will be selling 4.7 lakh equity shares and 3.13 lakh equity shares, respectively in the OFS.

Corporate promoter OrbiMed Asia III Mauritius, which held 57.27 percent shareholding in the company, is also offloading 38.15 lakh equity shares in the OFS. It is a part of the US-based healthcare-focussed investment firm OrbiMed.

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Promoters own 77.11 percent shareholding in the company and the remaining shares are held by public shareholders including Prasid Uno Family Trust.

The public issue included a reservation of equity shares worth Rs 8 crore for employees of the company.

The Prabhat Agrawal and Prem Sethi-founded company created pan-India, technology-driven and integrated healthcare products distribution platform with 77 warehouses across the country which enables healthcare product manufacturers to make their products available to several customers in the pharmacies, hospitals and clinics segments.

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Entero Healthcare Solutions, among the top three healthcare products distributors in India in terms of revenue in FY22, will utilise Rs 142.5 crore of the net fresh issue proceeds for repaying debts, and spend Rs 480 crore for long term working capital requirements. Further, the funds will also be used for inorganic growth initiatives through acquisitions, and general corporate purposes.

The company had outstanding borrowings of Rs 507.4 crore on a consolidated basis at the end of November 2023.

ICICI Securities, DAM Capital Advisors, Jefferies India, JM Financial and SBI Capital Markets are acting as the book-running lead managers for the issue.