Entero Healthcare Solutions Ltd IPO - Review, Valuation & GMP

Entero Healthcare Solutions IPO - Complete Overview

Founded in 2018, Entero has emerged as a leading healthcare product distributor, connecting manufacturers, hospitals, and pharmacies across the nation. This comprehensive network ensures efficient delivery of essential medical supplies, ultimately benefiting patients and providers alike.

Extensive Reach: With 73 warehouses strategically located in 37 cities, Entero covers 495 districts, guaranteeing nationwide access to crucial medical products.

Vast Selection: Partnering with over 1900 manufacturers, Entero offers a diverse range of 64500+ SKUs, catering to various healthcare needs.

Strong Partnerships: Entero boasts collaborations with more than 3400 hospitals and 81400+ retail pharmacies, forming a robust network that strengthens the healthcare ecosystem.

Rapid Growth: Fueled by innovation, Entero achieved the fastest scale-up in healthcare distribution between 2019 and 2022, through a dedicated workforce of over 3000 employees demonstrating their commitment to progress.

Their Distribution Network:

 

 

Entero Healthcare Solutions IPO Overview

Entero Healthcare Solutions IPO date is slated to be open for subscription from February 9, 2024, to February 13, 2024. This BSE NSE IPO follows a Book Built Issue IPO.

Entero Healthcare Solutions IPO price is fixed at Rs.1195 to Rs.1258 per share. 

The total issue size of this IPO amounts to Rs.1,600.00 CR. The company has reserved 75% for institutional investors, 10% for retail investors and 15% for other investors.

 

 

Entero Healthcare Solutions IPO timetable (Tentative)

Events	Date
IPO Opening Date	9 February 2024
IPO Closing Date	13 February 2024
IPO Allotment Date	14 February 2024
Refund initiation	15 February 2024
IPO Listing Date	16 February 2024

 

Entero Healthcare Solutions IPO Details 

IPO Opening & Closing Date	9 February to 13 February 2024
Face Value	Rs.10 per share
Issue Price	Rs.1195 to Rs.1258 per share
Lot Size	11 Shares
Price of 1 lot	Rs. 13,838
Total Issue Size	12,718,600 shares (aggregating up to Rs.1,600.00 Cr)
Offer for sale	4,769,475 shares of Rs.10 (aggregating up to Rs.600.00 Cr)
Fresh issue	7,949,125 shares (aggregating up to Rs.1,000.00 Cr
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

 

Entero Healthcare Solutions IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	11	Rs. 13,838
Maximum Lot Investment (Retail)	14 lot	154	Rs. 1,93,732
Minimum Lot Investment (HNI)	15 lot	165	Rs. 2,07,570
Maximum Lot Investment (HNI)	72 lot	792	Rs. 9,96,336

 

Entero Healthcare Solutions IPO Reservation

QIB Shares Offered	Maximum 75%
Retail Shares Offered	Minimum 10%
Other Shares Offered	Minimum 15%

 

Company Financial

The company's latest financial period showed improvements across various financials compared to previous years, indicating positive growth and performance trends over time.

(Amount in Crore)

Period	Sep 30 2023	Mar 31, FY 23	Mar 31, FY 22
Total Assets	1,505.95	1,308.73	1,125.98
Total Revenue	1,898.98	3,305.72	2,526.55
PAT	11.64	-11.10	-29.44
Net worth	660.54	597.66	563.22
Total Borrowings	488.68	373.52	285.03

 

Revenue by Operations

Revenue from operations increased from FY 22 to FY 23, with additional growth recorded in other income, resulting in higher total revenue for the respective periods.

(Amount in Crores)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	18,95.50	33,00.20	25,22.06
Other Income	3.47	5.51	4.48
Total Revenue	18,98.97	33,05.72	25,26.54

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Repayment/prepayment, in full or part, of certain borrowings availed of by the company and our Subsidiaries.

• Funding the long term working capital requirements.

• Pursuing inorganic growth initiatives through acquisitions.

• General corporate purposes.

 

Promoters and Management of Entero Healthcare Solutions IPO

1. Prabhat Agrawal.

2. Prem Sethi.

3. OrbiMed Asia III Mauritius Limited.

Pre-issue Promoter Shareholding	77.11%
Post-issue Promoter Shareholding

 

Entero Healthcare Solutions IPO Lead Managers

• ICICI Securities Limited

• Dam Capital Advisors Ltd

• Jefferies India Private Limited

• Jm Financial Limited

• SBI Capital Markets Limited

 

Peers of Entero Healthcare Solutions IPO

Entero Healthcare Solutions IPO presents a higher face value and P/E ratio compared to Medplus Health Services Limited.

Name of the Company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Entero Healthcare Solutions Limited	10.00	405.80	-3.10
Medplus Health Services Limited	2.00	216.07	4.17

 

Evaluation

The IPO is priced within the range of Rs.1195 to Rs.1258 per share.

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 3.10 from the last year, the resulting P/E ratio is 405.80x.

- Taking into account the weighted EPS of Rs 5.50 for the last three years, the P/E ratio amounts to 228.72x.

Comparative Analysis with Industry Average:

- The industry's average P/E is 216.07x.

As a result, the IPO price range, with a P/E ratio ranging from 405.80x to 228.72x, seems neutral in comparison to the industry average of 216.07x.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

 

IPO's Strengths

• Entero Healthcare Solutions, a healthcare company in India, can grow fast without spending much money.

• Their strong supply chain solutions make it hard for others to compete, keeping their value high.

• One of India’s largest and fastest-growing healthcare products distribution platforms

• Using their own technology, like their platform and business tools, helps them grow and change easily.

 

IPO's Weaknesses

• Exposure to financial loss if customers fail to meet contractual obligations.

• Potential impact of market price changes on income or financial instrument values. 

• Limited exposure due to primarily domestic revenue generation in Indian Rupees.

• Fluctuation in fair value or future cash flows of financial instruments due to market interest rate changes.

• No new products or business segments expected to materially impact business prospects, results, or financial condition.

 

IPO GMP Today

The Latest GMP of Entero Healthcare Solutions IPO is Rs.2.

 

Conclusion

The financial performance of the company has exhibited a promising trajectory, with notable improvements across key indicators compared to previous years. The increase in total assets underscores the company's commitment to investment and expansion initiatives. Additionally, the steady growth in net worth highlights the company's strengthened financial position and value creation over time. 

While the increase in total borrowings may raise questions about leverage, it could also signify strategic initiatives aimed at fueling growth and innovation. Overall, these financial metrics depict a picture of resilience, growth, and strategic planning, positioning the company for continued success in the future.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback, because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.