The Entero Healthcare Solutions IPO continued to see muted response even on the second day of bidding, February 12. Investors picked 13.85 lakh equity shares, which is 19 percent of the offer size of 71.5 lakh equity shares, as per the subscription data available with the exchanges.
Retail investors and employees remained at the forefront to support the issue, buying 88 percent and 77 percent of the portions set aside for them, respectively, while non-institutional investors (high networth individuals) bid 9 percent shares of the allotted quota.
Qualified institutional buyers have picked 825 equity shares against the reserved portion of 38.08 lakh shares.
The Rs 1,600-crore public issue was subscribed 10 percent on its first day of bidding, i.e. February 9.
The Faridabad-based healthcare products distributor intends to raise Rs 1,000 crore through fresh issue and the remaining Rs 600 crore via offer-for-sale (OFS) route. The price band for the offer is Rs 1,195-1,258 per share.
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There are several selling shareholders in the OFS including promoters OrbiMed Asia III Mauritius, Prabhat Agrawal, and Prem Sethi.
US-based investment firm OrbiMed-backed OrbiMed Asia III Mauritius is the largest shareholder with 57.27 percent stake in the company, while total promoters shareholding stands at 77.11 percent.
Entero Healthcare Solutions is going to utilise Rs 142.5 crore of the fresh issue proceeds for repaying debts, and Rs 480 crore for long term working capital requirements. And the balance fresh issue money will be kept aside for inorganic growth initiatives through acquisitions, and general corporate purposes.
Also read: Akums Drugs files draft IPO papers with Sebi; eyes Rs 680 cr via fresh issue
The public issue closes on February 13.
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