Entero Healthcare ends 8.6% lower on listing day

Shares of Entero Healthcare Solutions made a weak beginning at the bourses on Friday. Against the IPO price of ₹1,258, shares of the healthcare products distributor opened in discount at ₹1,245 and closed at 8.62 per cent lower at ₹1,149.50 on the BSE. During the day, the stock hit a low of ₹1,149.50.

On the NSE, shares of Entero Healthcare listed at ₹1,228.70, a discount of 2.33 per cent before settling at ₹1,150.10, down 8.58 per cent.

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The IPO saw only a lukewarm response and managed to close on a successful note due to last day bidding by institutional investors. 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 ₹600 crore. As part of the IPO exercise, Entero Healthcare Solutions raised ₹716 crore from anchor investors.

The company intends to use the net proceeds 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.

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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.

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