Healthcare products distributor firm Entero Healthcare Solutions will open its initial public offering (IPO) for subscription on February 9 and will close its subscriptions on February 13. The company was founded by Prabhat Agarwal and Prem Sethi in 2018. It is known as one of the top three healthcare product distributors in India in terms of revenue in financial year 2022-23.
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Here are five things you should know before you decide to subscribe to the issue:
1. The Entero Healthcare Solutions IPO is worth ₹1,600 crore. It has a fixed price band of ₹1,195-1,256 per share.
2. Entero Healthcare’s IPO is a combination of a fresh issue of equity shares worth up to ₹1,000 crore and an Offer For Sale (OFS) component of 47.69 lakh equity shares aggregating up to ₹600 crore at the upper end of the price band.
Those selling shares in OFS include Prabhat Agrawal, Prem Sethi, and OrbiMed Asia III Mauritius Ltd.
3. The company said that proceeds from the IPO will be utilised for payment of debt, funding working capital requirements, inorganic growth initiatives through acquisitions and general corporate purposes.
4. According to the company, 75 per cent of the issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 10 per cent for retail investors.
5. ICICI Securities Ltd, DAM Capital Advisors Ltd, Jefferies India Private Ltd, JM Financial Ltd and SBI Capital Markets Ltd are book-running lead managers to the offer.
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Entero Healthcare Solutions IPO GMP
In the grey market, the shares of Entero Healthcare Solutions are trading at a premium of ₹125. The expected listing price will be ₹1,383 which is nearly 10 per cent of the issue price. The IPO is expected to be listed on BSE and NSE on February 16.
(With PTI inputs)