Entero Healthcare IPO Allotment Status and Investment Highlights

Entero Healthcare Solutions emerged as one of India's top three healthcare product distributors by revenue in FY 2022. With a vision to pioneer an organised, nationwide, technology-enabled healthcare products distribution platform, Entero aims to enhance the efficiency and effectiveness of the entire healthcare ecosystem. As Entero Healthcare is launching its IPO, investors can anticipate a company poised to transform healthcare distribution through innovation and strategic growth initiatives.

Topics Covered:

• Entero Healthcare IPO Allotment Status
• Entero Healthcare IPO Details
• About the Company
• IPO Objectives
• Things to Consider Before Investing in Entero Healthcare IPO
• Summary

Entero Healthcare IPO Allotment Status

To check Entero Healthcare allotment status, follow the steps given below:

1. Log in to the Religare Dynami app.
2. Navigate to the individual order details page of the IPO you applied for.
3. Look for the section displaying the IPO allotment status.
4. Alternatively, you will be notified of your IPO allotment status via push notifications, emails, and SMS.

By following these steps, you can easily stay updated on the status of your IPO allotment through the Religare Dynami app, ensuring a seamless and convenient experience for investors.

Entero Healthcare IPO Details

Checkout the List of Upcoming IPO .

Entero Healthcare Solutions is set to launch its IPO from February 9 to February 13, 2024. The face value of each share is Rs 10, with a price band ranging from Rs. 1195 to Rs. 1258 per share. The lot size for the IPO is 11 shares. The total issue size comprises 12,718,600 shares, aggregating up to Rs. 1,600.00 crore.

Of this, the fresh issue constitutes 7,949,125 shares, amounting to Rs. 1,000.00 crore, while the offer for sale includes 4,769,475 shares, valued at Rs. 600.00 crore. Employees can avail of a discount of Rs. 119 per share. The IPO is a Book Built Issue IPO and will be listed on both the BSE and NSE.

Pre-issue, the company's shareholding stands at 39,577,705, which will increase to 47,526,830 post-issue. This IPO presents an opportunity for investors to participate in Entero Healthcare Solutions' growth story in the dynamic healthcare distribution sector.

About the Company

Entero Healthcare Solutions Ltd, established in 2018, revolutionises healthcare product distribution in India through its innovative technology-driven platform. Catering to pharmacies, hospitals, and clinics, the company offers a vast array of over 64,500 SKUs with real-time inventory tracking, alongside order fulfilment and claims settlement services for retail pharmacies. For hospitals, Entero supplies a comprehensive range of pharmaceuticals, nutraceuticals, vaccines, medical devices, orthopaedic implants, and coronary stents.

Additionally Read: Demat Account Definition

Under the brand Entero Surgicals, it markets private label medical devices and consumables. Boasting one of India's largest healthcare product distribution platforms, Entero is among the top three distributors by revenue in FY22, with a substantial network encompassing over 81,400 retail customers, 3,400 hospital clients, and 1,900 manufacturers.

Operating through 73 warehouses across 37 cities, covering 495 districts, the company employs over 3,401 personnel. The IPO proceeds will bolster the company's financial health, enabling repayment of high-cost borrowings, funding long-term working capital requirements, and facilitating strategic growth initiatives. Led by prominent financial institutions, the IPO underscores Entero's commitment to advancing healthcare accessibility and efficiency in India.

IPO Objectives

Entero Healthcare Solutions Ltd aims to utilise the net proceeds from the fresh issue as follows:

1. Repayment of specific borrowings acquired by the company and its subsidiaries, aiming to reduce debt burden and enhance financial stability.
2. Provision of funds for long-term working capital needs, ensuring operational continuity and supporting business growth.
3. Pursuit of inorganic growth strategies through strategic acquisitions, enabling expansion into new markets and diversification of product offerings.
4. Allocation for general corporate purposes, facilitating day-to-day operations, research and development, and other business activities aimed at sustaining and enhancing company performance.

Through these objectives, Entero Healthcare Solutions seeks to optimise its capital structure, drive sustainable growth, and fortify its position as a leading player in the healthcare products distribution sector.

Things to Consider Before Investing in Entero Healthcare IPO

• Strengths

1. Market Opportunity: Entering the fragmented Indian pharmaceutical distribution market offers significant growth potential, with organised players able to leverage economies of scale to gain market share.
2. Diversified Customer and Supplier Base: Entero Healthcare Solutions boasts a highly diversified customer and supplier base, reducing the risk of revenue or supply concentration and enhancing negotiation capabilities.
3. Rapid Scale-Up: Despite being founded in 2018, the company has achieved the fastest scale-up among healthcare product distributors in India, driven by a scalable business model focused on technology, finance, and geographic expansion.

• Weaknesses

1. Working Capital Requirement: The company's business model necessitates a significant amount of working capital, with a substantial portion allocated to inventories, potentially straining liquidity.
2. Financial Performance: Recent financial reports indicate losses and negative cash flows, highlighting potential challenges in sustaining profitability and financial health.
3. Operational Efficiency: Newly established warehousing facilities may not generate anticipated efficiencies, potentially impacting business operations and growth.

Summary

Entero Healthcare Solutions Ltd's IPO presents an exciting opportunity for investors to participate in the dynamic healthcare products distribution sector in India. With its innovative technology-driven platform, diversified customer and supplier base, and rapid scale-up, Entero is poised for growth and success in the market.

However, investors should carefully consider certain factors before investing. While Entero's market opportunity and diversified base are strengths, its significant working capital requirement, recent financial performance challenges, and potential operational efficiency issues pose weaknesses that need to be monitored closely.

Ultimately, investors should conduct thorough research, assess their risk tolerance, and weigh the strengths and weaknesses of Entero Healthcare Solutions before making investment decisions. By staying informed and prudent, investors can potentially capitalize on the growth prospects offered by Entero's IPO while mitigating associated risks. Additionally, considering opening a demat account can streamline the process of participating in IPO like Entero Healthcare Solutions, providing investors with a secure platform to manage their investments efficiently and effectively.