Entero Healthcare Solutions off to a weak start, lists at 2% discount to IPO price

Entero Healthcare Solutions stock made a weak debut, listing at a 2.3 percent discount to the IPO price on February 16. The shares opened at Rs 1,228.7 on NSE and Rs 1,245 on BSE against the issue price of Rs 1,258.

Ahead of its market debut, the stock’s grey market premium was wiped off. The grey market is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track it to get an idea of the listing price.

The Rs 1,600-crore public issue, which was open for bidding from February 9 to 13, was subscribed just 1.53 times. Qualified institutional buyers bought 2.28 times their allotted quota of shares and retail investors 1.33 times. Non-institutional investors bought only 22 percent of the shares reserved for them in the offer.

The company raised Rs 1,000 crore through the fresh issue and Rs 600 crore via offer-for-sale component. The price band for the offer was Rs 1,195-1,258 crore.

In FY23, the company narrowed losses to Rs 11.1 crore from Rs 29.4 crore in the previous year. Revenue grew Rs 30.85 percent to Rs 3,300 crore. Prabhat Agrawal, Prem Sethi, and OrbiMed Asia III Mauritius are the promoters of the company.

Entero is a healthcare product distributor. Utilising a technology-driven platform, the company offers distribution services to pharmacies, hospitals, and clinics across the country. It operates 73 warehouses in 37 cities in 19 states and union territories, serving a customer base that includes over 81,400 pharmacies and 3,400 hospitals, providing extensive access to healthcare product manufacturers.