Entero Healthcare Solutions Lists at a Discount of Rs 1229 per share

Entero Healthcare Solutions Limited is a distributor of healthcare products in India, debuted on the Indian stock market today.

The company’s stock opened at Rs 1245 per share, reflecting a discount of 1.03% compared to the final issue price of Rs 1258 per share, on BSE. The market capitalisation of the company stands at Rs 5415 crore on the BSE. Meanwhile, on the NSE, the stock debuted at Rs 1228.70 per share, a discount of 2.33% compared to its final issue price.

IPO Proceeds

The company proposes to utilise the net proceeds from the fresh issue for funding the following objectives:

• Repayment/prepayment, in full or in part, of certain borrowings availed by the company and its subsidiaries.
• Funding the long-term working capital requirements.
• Pursuing inorganic growth initiatives through acquisitions.
• General corporate purposes.

Company Profile

Incorporated in 2018, Entero Healthcare Solutions Limited is a distributor of healthcare products in India. The company’s technology-driven platform provides healthcare product distribution services to pharmacies, hospitals, and clinics throughout India.

During the fiscal years 2021, 2022, and 2023, the company served over 39,500, 64,200, and 81,400 retail customers, respectively. Additionally, they also served over 1,600, 2,500, and 3,400 hospital customers during the same period.

Entero Healthcare Solutions has relationships with over 1,900 healthcare product manufacturers, giving them access to more than 64,500 product stock-keeping units as of March 31, 2023.

Subscription Details

On February 13, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 1.53 times. The public issue received remarkable interest, with the retail category being subscribed 1.33 times, while the QIB and NII categories reached a subscription rate of 2.28 and 0.22 times respectively.

The IPO price band was between Rs 1195 and Rs 1258, with a face value of Rs 10 per share and a lot size of 11 shares. The total size of the company’s IPO was Rs 1600 crore, and the final share issue price was fixed at Rs 1258 each.

Financial Performance

Conclusion 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely with the intention of capitalising on listing gains have been disappointed, as the stock debuted at a discount. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might choose to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.