Shares of Entero Healthcare Solutions will be listed at the exchanges on Friday. The company has fixed the IPO price as ₹1,258. The IPO saw only a lukewarm response on the first days and was managed to close on successful note due to last day bidding by institutional investors.
Analysts expect a flat-to-positive opening for the stock.
The IPO was subscribed 1.53 times. QIB portion got subscribed 2.28 times and retail investors’ portion by 1.33 times. Non-Institutional Investors did not show much interest in the IPO as the quota reserved for them was subscribed by only 22 per cent or 0.22 times.
The IPO consisted a fresh issue worth ₹1,000 crore, and an offer-for-sale (OFS) of up to 47,69,475 shares by the promoters and other investors aggregating to ₹600 crore.
As part of the IPO exercise, Entero Healthcare Solutions has allotted 56,94,753 shares at ₹1,258 a share to 25 anchor investors and raised ₹716 crore.
The company intends to use the net proceeds from the fresh offering to finance the company’s long-term working capital needs for FY2025 and 2026; to pursue inorganic growth initiatives through acquisitions; and for general corporate purposes.
Repayment or prepayment of certain borrowings that the company has taken out may be done in full or in part, the company said in the DRHP.
Entero Healthcare Solutions Ltd, incorporated in 2018, is a distributor of healthcare products in India through an organised technology-driven platform. The company provides healthcare product distribution services to pharmacies, hospitals, and clinics.
For retail pharmacies, it provides over 64,500 SKUs (stock keeping units), with real-time inventory records. They also offer order fulfilment and claims settlement.