Entero Healthcare IPO targets raising approximately Rs 1600 crore; should you subscribe? | – Times of India

by The Technical Blogs


Entero Healthcare IPO: Entero Healthcare has launched its Initial Public Offering (IPO) today, aiming to raise approximately Rs 1600 crore, making it the largest fundraising effort through the primary market route this year. Prior to the opening of the IPO, the company successfully secured Rs 716 crore from 25 anchor investors.
Review of Entero Healthcare IPO
As per ET, analysts are recommending subscribing to the IPO because of the company’s strong financial history, improved operational performance, and positive industry growth prospects.
BP Equities, for instance, highlighted that the issue is reasonably valued compared to its peers, stating “The issue is valued at a P/E of 111.2x on the upper price band based on FY24E earnings, which we feel is fairly valued in comparison to its peers. We, therefore, recommend a Subscribe rating to the issue.”
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Price band and other details
The price range for the public offer is set between Rs 1,195 and Rs 1,258 per equity share. Investors can bid for a minimum of 11 shares and in multiples thereafter.
The IPO includes a new equity offering of Rs 1,000 crore and the sale of up to 47.69 lakh shares. Through the Offer for Sale (OFS), individuals such as Prabhat Agrawal, Prem Sethi, Orbimed Asia III Mauritius, Chethan MP, and Deepesh T Gala will sell their shares.
The company plans to use the proceeds from the IPO for various purposes, including debt repayment, long-term working capital, funding subsidiaries, and pursuing growth through acquisitions. The offer follows the book building process, with 75% allocated to qualified institutional buyers, 10% to non-institutional investors, and 10% to retail investors.
Entero Healthcare Solutions aids healthcare product manufacturers by enhancing their access to pharmacies, hospitals, and clinics. With 73 warehouses nationwide as of March 2023, the company aims to create a tech-driven distribution platform spanning the entire healthcare sector in India. Its strategy of acquiring and integrating smaller distributors has expanded its geographic reach and customer base.
In FY23, revenue surged by 31% year-on-year to Rs 3,300 crore, with losses narrowing to Rs 11.1 crore from Rs 29.4 crore. The company sustained impressive revenue growth, with a CAGR of 36.2% during FY21-23.
The IPO’s book running lead managers include ICICI Securities, Dam Capital Advisors, Jefferies India, JM Financial, and SBI Capital Markets.


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