Entero Healthcare Solutions had a lackluster debut on February 16, with its stock listing at a 2.3 percent discount to the IPO price. Shares opened at Rs 1,228.7 on the NSE and Rs 1,245 on the BSE, compared to the issue price of Rs 1,258.
The subdued debut came after the stock’s grey market premium was wiped out. The grey market, an unofficial platform where shares trade before IPO allotment and listing, serves as an indicator for potential listing prices.
The Rs 1,600-crore public issue, open for bidding from February 9 to 13, saw moderate subscription at 1.53 times. Qualified institutional buyers oversubscribed their quota by 2.28 times, while retail investors subscribed 1.33 times. Non-institutional investors subscribed only 22 percent of the shares reserved for them.
Entero raised Rs 1,000 crore through a fresh issue and Rs 600 crore via an offer-for-sale component, within a price band of Rs 1,195-1,258. In FY23, the company reduced losses to Rs 11.1 crore from Rs 29.4 crore, with revenue growing by 30.85 percent to Rs 3,300 crore. Prabhat Agrawal, Prem Sethi, and OrbiMed Asia III Mauritius are the company’s promoters.
Operating 73 warehouses across 37 cities in 19 states and union territories, Entero is a healthcare product distributor leveraging a technology-driven platform. It offers distribution services to pharmacies, hospitals, and clinics nationwide, serving over 81,400 pharmacies and 3,400 hospitals, thus providing extensive access to healthcare product manufacturers.
