Entero Healthcare Solutions set to launch Rs 1,600-crore IPO on February 9

Healthcare product distributor Entero Healthcare Solutions is set to launch its initial public offering (IPO) on February 9, with a price band of Rs 1,195 - Rs 1,258 per share. The IPO aims to raise around Rs 1,600 crore, comprising a fresh issue of 7.9 million shares aggregating to Rs 1,000 crore and an offer-for-sale (OFS) of 4.8 million shares aggregating to Rs 600 crore.

In FY23, Entero Healthcare reported Rs 33,00.20 crore in revenue from operations with a gross profit of Rs 268.34 crore.

Speaking on fund utilisation, Prabhat Agrawal, Co-founder and MD at Entero Healthcare, stated, "In terms of fund allocation, 35 percent of the overall IPO raise can be either utilised towards inorganic acquisitions or general corporate purposes. Since our inception in 2018, we have done 34 acquisitions. Acquisitions are a pillar of our strategy hence we will continue doing it."

The IPO allocation strategy includes reserving at least 75 percent of the shares for Qualified Institutional Buyers (QIB), with non-institutional investors (NII) getting up to 15 percent, and retail investors up to 10 percent. Additionally, an employee reservation portion offers equity shares worth up to Rs 8 crore, with a Rs 119 per share discount for eligible employees.

The OFS is 44 percent lower than the initial plan of 8.6 million equity shares. The prominent shareholders who will offload their holdings include Prabhat Agrawal, Prem Sethi, and OrbiMed Asia III Mauritius. OrbiMed Asia III Mauritius Limited stands out as the largest shareholder, planning to offload 3.8 million equity shares. Prabhat Agrawal and Prem Sethi will sell 0.47 million and 0.31 million equity shares, respectively. Other shareholders include Novacare Drug Specialities, which is selling up to 42,250 equity shares, and K.E. Prakash, who is selling up to 39,610 equity shares.

The firm has appointed ICICI Securities, Dam Capital Advisors, Jefferies India, JM Financial, and SBI Capital Markets as book lead managers.