The initial public offering (IPO) of Entero Healthcare Solutions is set to conclude for public subscription today, amid a tepid response from investors. As of now, the company has garnered subscriptions for just 0.19 times or 19% of the total shares on offer.

With a net-off anchor investors’ count of 71.50 lakh shares, the IPO has only received bids for 13.86 lakh shares. The IPO comprises a fresh issue worth ₹1,000 crore and an offer-for-sale (OFS) of up to 47,69,475 shares by promoters and other investors, aggregating to ₹600 crore. Promoters selling their shares include Prabhat Agrawal, Prem Sethi, and OrbiMed Asia III Mauritius Ltd.

Entero Healthcare Solutions has allocated a minimum of 75% of the offer to qualified institutional buyers (QIBs), with not more than 15% for non-institutional investors (NIIs) and up to 10% for retail investors. However, all three segments remained undersubscribed even by the end of Day 2, with retail and non-institutional segments subscribed at 0.88 times and 0.09 times, respectively. QIBs are yet to make bids, while shares worth up to ₹8 crore have been reserved for employees, who will receive a discounted rate of ₹119 per share.

As part of the IPO, Entero Healthcare Solutions allotted 56,94,753 shares at ₹1,258 per share to 25 anchor investors, raising ₹716 crore. Marquee investors in the anchor book include Capital Group, GIC, TT Emerging Markets Unconstrained Fund, Premji, and others.

The company intends to utilize the net proceeds from the fresh offering to finance its long-term working capital needs for FY2025 and FY2026, pursue inorganic growth initiatives through acquisitions, and for general corporate purposes. Repayment or prepayment of certain borrowings may also be considered.

Entero Healthcare Solutions, established in 2018, operates as a distributor of healthcare products in India through a technology-driven platform. It provides healthcare product distribution services to pharmacies, hospitals, and clinics, offering over 64,500 SKUs with real-time inventory records, order fulfillment, and claims settlement services for retail pharmacies.

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