Entero Healthcare Solutions
Book Building issueMainboard₹1,600 Cr issue
-1.03%
Listing gain over issue price
Issue size
₹1,600 Cr
1 lot at cut-off
₹13,838
Lot size
11shares
Open
09 Feb 2024
Close
13 Feb 2024
Allotment
14 Feb 2024
Listing
16 Feb 2024
Listing performance
Issue price
₹1,258
Listed at
₹1,245
Listing-day close
₹1,149.55
Latest price
₹1,468.40
Close on 23 Oct 2026
Listing gain
-1.03%
Return since issue
+16.72%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 09 Feb 2024 – 13 Feb 2024
- Listing date
- 16 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹1,258 per share
- Lot size
- 11 shares
- Issue type
- Book Building issue
- Total issue size
- ₹1,600 Cr
- Market cap at offer price
- ₹3,021 Cr
- Promoter holding
- 77.11% → 52.43% pre-issue → post-issue
- ISIN
- INE010601016
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- Plot No.I-35, Building-B, Industrial Area Phase-I, 13/7 Mathura Road, Haryana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 56,94,753 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 11 shares per lot, in multiples, at ₹1,258
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 11 | ₹13,838 |
| Retail (max) | 14 | 154 | ₹1,93,732 |
| S-HNI (min) | 15 | 165 | ₹2,07,570 |
| S-HNI (max) | 72 | 792 | ₹9,96,336 |
| B-HNI (min) | 73 | 803 | ₹10,10,174 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
56,94,753
Anchor portion
₹716 Cr
at ₹1,258 per share
Valuation and performance
Valuation at offer price
₹1,258 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 0.00 | 9.70 |
| P/E (×) | — | 129.69 |
| Price to book (×) | 7.22 | — |
| Market cap | — | ₹3,021 Cr |
No price-to-earnings multiple is shown: the company reported a loss, and an earnings multiple struck on negative earnings would read as a cheap valuation while meaning the opposite.
Key performance indicators
Latest reported period
- Return on net worth
- −1.86%
- ROCE
- 6.06%
- Debt / equity
- 0.45
- PAT margin
- 4.69%
- NAV per share
- ₹174.21
- Price to book
- 7.22
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Entero Healthcare Solutions
Entero Healthcare Solutions Limited is a healthcare products distribution company incorporated as a private limited company on January 10, 2018, and converted to a public limited company on August 25, 2023. The Company distributes healthcare products to retail pharmacies, hospitals, and healthcare clinics across India. As of September 30, 2023, it operates 77 warehouses across the country and enables healthcare product manufacturers to reach a wide range of customers through its integrated, technology-driven, pan-India distribution platform. Since inception, the Company has completed 34 acquisitions of regional and local distributors to expand its business and customer base. The Company earns revenue through the distribution and supply of pharmaceutical products, healthcare products, and related items to its retail and institutional customers.
Company Analysis
from RHPEntero Healthcare Solutions Limited is a pan-India healthcare products distributor operating in pharmaceutical and healthcare distribution, serving retail pharmacies, hospitals, and healthcare clinics through an integrated technology-driven platform.
Entero Healthcare Solutions Limited is a healthcare products distribution company incorporated as a private limited company on January 10, 2018, and converted to a public limited company on August 25, 2023. The Company distributes healthcare products to retail pharmacies, hospitals, and healthcare clinics across India. As of September 30, 2023, it operates 77 warehouses across the country and enables healthcare product manufacturers to reach a wide range of customers through its integrated, technology-driven, pan-India distribution platform. Since inception, the Company has completed 34 acquisitions of regional and local distributors to expand its business and customer base. The Company earns revenue through the distribution and supply of pharmaceutical products, healthcare products, and related items to its retail and institutional customers.
Pharmaceutical distributionHealthcare products distributionHealthcare supply chain and logistics
Objects of the Issue
- Repayment/prepayment, in full or part, of certain borrowings availed of by our Company ₹1,425.00 million p.27
- Funding of long-term working capital requirements of the Company and its Subsidiaries during Fiscals 2025 and 2026 ₹4,800.00 million p.27
- General corporate purposes [●] p.27
- Pursuing inorganic growth initiatives through acquisitions [●] p.27
- Funding capex for expansion of warehousing and distribution infrastructure ₹10,000 million (Fresh Issue component) p.64
- Repayment/prepayment, in full or part, of certain borrowings availed of by our Company ₹1,425.00 million p.118
- Funding of long-term working capital requirements of the Company and its Subsidiaries during Fiscals 2025 and 2026 ₹4,800.00 million p.120
- Pursuing inorganic growth initiatives through acquisitions [●] p.116
- General corporate purposes [●] p.116
- Fresh Issue ₹ 10,000 million p.511
Issue Structure
- Total Issue
- Up to [●] Equity Shares aggregating up to ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹ 10,000 million
- Offer for Sale
- Up to 4,769,475 Equity Shares aggregating up to ₹ [●] million
- Price Band
- [●] per Equity Share to ₹[●] per Equity Share
- Lot Size
- [●] Equity Shares
- Face Value
- ₹ 10 each
Business Model
The Company operates as a healthcare products distributor, generating revenue by purchasing pharmaceutical and healthcare products from manufacturers and suppliers and re-selling them to retail pharmacies, hospitals, and healthcare clinics across India. The Company applies a margin over the supplier's selling prices when selling to customers, with purchase of stock-in-trade representing the largest component of expenses (92.46% of revenue from operations in Fiscal 2023). The Company also operates a private label business under the brand 'Curever' for generic medicines, though this business is being scaled down due to competition and pricing pressure.
Business Segments
Distribution of pharmaceutical products and healthcare products to retail pharmacies, hospitals, and healthcare clinics across India through a pan-India network of 77 warehouses with integrated technology-driven platform.
Manufacturing and distribution of generic medicines under the private label brand 'Curever'. This business is being gradually scaled down due to significant external competition and pricing pressure.
Distribution of pharmaceutical and surgical products to retail pharmacies, hospitals and healthcare clinics
Distribution of pharmaceutical products, nutraceuticals, medical devices, surgical consumables, over-the-counter medicines and vaccines to retail pharmacies, hospitals and clinics
Distributing healthcare products to retail pharmacies who then sell these products to end-customers. The company supplies a wide range of healthcare products, including pharmaceutical, nutraceutical and OTC products, and medical devices to pharmacies through nationwide distribution network consisting of delivery fleet, delivery personnel and third-party courier services. Provides claim settlements for order returns and expiry returns.
Distributing healthcare products to hospitals and healthcare clinics across India. Supplies a wide range of healthcare products including pharmaceutical and nutraceutical products, vaccines, medical devices such as orthopaedic implants and coronary stents, and hospital consumables such as examination and surgical gloves, syringes, needles and sutures through nationwide distribution network.
Offering comprehensive and integrated commercial solutions including sales, marketing and supply chain solutions to healthcare product manufacturers for them to expand their reach in the Indian market. Deploys medical sales representatives to promote healthcare product manufacturer's products to healthcare professionals and doctors, conducts marketing activities to increase visibility and awareness of brands, manages supply chain and ensures availability across pharmacies and hospitals, develops and implements marketing strategies, brand promotion programs, regional expansion strategies, pricing and promotion offers, and channel management.
Selling private label products under the Entero Surgicals brand comprising brands such as Carent, Entros, Entair, Safent and Glovent. Product categories include homecare medical devices, surgical consumables, and rehabilitation products and devices. Key products include nebulizers (Entair brand), personal protective and surgical consumable products (Safent brand), homecare medical devices (Carent brand), gloves (Glovent brand) and mobility equipment (Entros brand). Products are manufactured by third party manufacturers pursuant to contracts with the company and distributed to retail pharmacies, hospitals and nursing homes across India.
Distribution of pharmaceuticals, surgicals and other healthcare and allied products through subsidiary companies
Software designing, development, customization implementation, maintenance, testing and bench marking, dealing in computer software and solutions
Sale of traded pharmaceutical goods to customers
Marketing support and other operative services
Wholesale trading and distribution of pharmaceutical and surgical products across India
Distribution of pharmaceutical products, nutraceuticals, medical devices, surgical consumables, over-the-counter medicines, and vaccines to retail pharmacies, hospitals, and clinics through a nationwide network of 77 warehouses. Provides services including central warehousing, redistribution, last-mile delivery, and demand generation solutions.
Subsidiaries purchase pharmaceutical / healthcare products from product manufacturers or their appointed CFAs and sell the products to the pharmacies and hospitals in their respective local markets. Subsidiaries benefit from the parent company's technology infrastructure, manufacturer relationships, central procurement support and banking relationships.
The company engages in the marketing of third-party brands and sale of its private label brands at a national level, with a part of such sales to subsidiaries (inter-company revenues eliminated at consolidated level).
Manufacturing and distribution of specialty pharmaceutical products
SWOT Analysis
Strengths
- • Established pan-India healthcare distribution platform with significant scale and reach(p.26)
- • Substantial customer base across retail pharmacies and hospitals with diversified product portfolio(p.29)
- • Growing geographic coverage and operational scale(p.29)
- • Technology-driven integrated distribution platform(p.26)
- • Strong revenue growth trajectory(p.51)
- • Nationwide distribution infrastructure(p.56)
- • Successful track record of acquisitions(p.40)
- • Strong emphasis on quality and customer engagement(p.50)
- • Large-scale acquisition track record with 34 past acquisitions demonstrating integration capability(p.123)
- • Nationwide geographic presence across 37 cities in 19 states and union territories(p.120)
- • Substantial funded working capital investment planned to support growth(p.120)
- • Significant debt reduction planned to improve financial leverage(p.118)
- • Top 3 healthcare distributor by revenue with fastest scale-up in industry(p.185)
- • Largest hospital customer network among pharmaceutical distributors in India(p.185)
- • Pan-India presence with extensive geographic reach and warehouse network(p.181)
- • Strong relationships with healthcare manufacturers and access to diverse product portfolio(p.181)
- • Proprietary technology platform with integrated business intelligence tools(p.189)
- • Proven track record of acquisitions and integration capability(p.190)
- • Experienced management team with deep healthcare industry expertise(p.190)
- • Multi-location acquisition strategy to expand geographic reach(p.341)
- • Established acquisition track record with systematic integration(p.340)
- • Diversified subsidiary network across India for market penetration(p.340)
- • Top-three healthcare products distributor in India with strong scale(p.429)
- • Fastest scale-up among healthcare distributors, reaching ₹25,000 million revenue in four years(p.429)
- • Largest hospital customer network among pharmaceutical distributors in India(p.430)
- • Extensive warehouse and logistics infrastructure with regulatory compliance(p.430)
- • Wide product portfolio providing one-stop healthcare solution(p.431)
- • Technology-driven B2B platform (Entero Direct) with significant active user base(p.431)
- • Strong relationships with over 1,900 healthcare product manufacturers(p.429)
- • Largest acquisition track record in Indian healthcare distribution with 34 acquisitions since 2018(p.432)
- • Top 3 market position in Indian healthcare products distribution by revenue(p.436)
- • Rapid organic and inorganic growth with 36.17% CAGR in revenue (FY2021-FY2023)(p.434)
- • Proven integration capabilities delivering synergies from acquisitions(p.432)
- • Extensive geographic reach covering 501 districts with 77 warehouses(p.433)
- • Significant supplier diversity with 1,900+ pharmaceutical companies and 64,500+ SKUs(p.433)
Weaknesses
- • History of losses in recent fiscal years affecting profitability(p.45)
- • High working capital requirements and substantial indebtedness creating financial strain(p.44)
- • Negative cash flows from operating activities limiting operational flexibility(p.41)
- • Pledging of subsidiary shares to lenders creating control risks(p.46)
- • Private label business (Curever) experiencing significant losses and declining viability(p.47)
- • Regulatory compliance issues and delays in statutory filings(p.49)
- • Lack of long-term customer contracts(p.50)
- • Credit risk exposure from trade receivables(p.50)
- • High employee attrition rates(p.58)
- • Inventory management challenges(p.53)
- • Unsecured loans in subsidiaries that can be recalled(p.55)
- • Multiple regulatory compliance issues including past filing delays(p.63)
- • Lease agreements not properly registered or stamped(p.59)
- • Currently loss-making with negative profit after tax across recent periods(p.135)
- • Negative return on equity indicating inefficient equity utilization(p.135)
- • Significant accumulated losses in capital structure(p.132)
- • Dependence on limited number of key promoter shareholders for control and decision-making(p.112)
- • High debt burden with outstanding borrowings of ₹5,074.24 million as of November 30, 2023(p.118)
- • Persistent losses despite revenue growth(p.184)
- • Negative net profit margins across multiple years(p.184)
- • High leverage with gearing ratios exceeding 2.0(p.177)
- • Heavy dependence on subsidiary revenues for consolidated operations(p.183)
- • Significant working capital requirements(p.184)
- • Incomplete insurance coverage of assets(p.200)
- • High goodwill in acquisitions relative to tangible net assets acquired(p.341)
- • Substantial deferred consideration obligations creating cash flow pressure(p.341)
- • Significant exposure to trade receivables credit risk(p.345)
- • Rising debt levels with increasing adjusted net debt to equity ratio(p.344)
- • High reliance on variable rate borrowings creating interest rate exposure(p.346)
- • High finance costs and debt burden(p.409)
- • Significant dependence on related party transactions within the group(p.378)
- • Scaling down of generic medicine business (Curever) due to competition(p.391)
- • EBITDA of scaled-down Curever business is negative(p.391)
- • Negative net worth and persistent losses despite revenue growth(p.451)
- • High dependence on subsidiaries representing 93.45% of consolidated revenue(p.432)
- • Significant indebtedness with borrowings of ₹4,886.77 million and debt-to-equity of 0.74x(p.465)
- • High working capital intensity with 67 net working capital days and large receivables increase(p.433)
- • Rising finance costs at 1.70% of total income with interest rates increasing to 12.94%(p.453)
- • Legal exposure including criminal proceedings related to product quality standards(p.476)
Opportunities
- • Large and fragmented pharmaceutical distribution market with consolidation potential(p.26)
- • Strategy to pursue inorganic growth through acquisitions of regional and local distributors(p.40)
- • Planned expansion into synergistic product adjacencies and new geographies(p.40)
- • Fragmented pharmaceutical distribution market with consolidation potential(p.54)
- • Growth in India's healthcare spending(p.65)
- • Expansion of product adjacencies and private label offerings(p.52)
- • Digital transformation and technology adoption(p.52)
- • Geographic expansion opportunities(p.55)
- • Large underpenetrated market with only 8-10% of pharmaceutical distribution dominated by large/national players versus 90-95% in developed markets(p.163)
- • Strong projected growth in Indian pharmaceutical market at 9-10% CAGR between fiscal 2023 and 2028(p.161)
- • Adjacency expansion into medical devices and surgical consumables alongside pharmaceutical distribution(p.168)
- • Expected market consolidation with large/national distributors' share projected to rise to 20-30% by fiscal 2028 from current 8-10%(p.164)
- • Growth drivers including rising per capita healthcare spending and increasing chronic disease incidence in India(p.158)
- • Significant market consolidation opportunity in highly fragmented distribution sector(p.185)
- • Large and growing addressable market with double-digit growth trajectory(p.185)
- • Expansion into adjacent product categories with higher margins(p.191)
- • Growth through strategic acquisitions with 17-acquisition pipeline(p.191)
- • Opportunity to increase penetration in existing markets using hub-and-spoke model(p.191)
- • Private label and higher-margin product category expansion(p.191)
- • Continued geographic expansion through acquisitions of regional distributors(p.340)
- • Market consolidation in pharmaceutical distribution through strategic acquisitions(p.341)
- • Portfolio expansion to tier-2 and tier-3 cities across multiple regions(p.342)
- • Consolidation of fragmented Indian pharmaceutical distribution sector(p.430)
- • Expansion potential through acquisition strategy(p.392)
- • Growing demand for organized, compliant distribution and cold chain logistics(p.430)
- • Rising preference of manufacturers and retailers for fewer, larger distributors(p.430)
- • Data analytics and intelligence offerings to manufacturers(p.430)
- • Market consolidation opportunity with fragmented market where large players hold only 8-10% share, expected to rise to 20-30% by FY2028(p.435)
- • Strong organic market growth of 10-11% CAGR (FY2023-FY2028) with ₹2.7 trillion addressable market(p.436)
- • Pipeline of 17 strategic acquisitions across 14 locations with signed term sheets(p.435)
- • Higher margin segments in medical consumables and devices with 1.5-2.0x margin of pharma(p.435)
- • Improved margins through scale and hospital customer segment optimization(p.435)
- • Consolidation tailwinds from GST regime benefits, technology-driven networks, and operational efficiencies(p.435)
Threats
- • Regulatory framework imposing restrictive covenants affecting business flexibility(p.43)
- • Product liability risks and regulatory actions related to product quality(p.42)
- • Potential opposition from trade associations and unions to consolidation strategy(p.40)
- • High dependency on supplier relationships and procurement costs affecting margins(p.45)
- • Industry cyclicality and market consolidation risks impacting private label business(p.47)
- • Regulatory changes to drug pricing(p.54)
- • Health epidemics and pandemics(p.51)
- • Intense competition and industry consolidation(p.54)
- • Dependence on manufacturer supply chain(p.58)
- • Trade discount reduction from suppliers(p.54)
- • Macroeconomic conditions and currency fluctuations(p.65)
- • Natural disasters and operational disruptions(p.57)
- • Highly fragmented market with approximately 65,000 distributors creating intense competition(p.160)
- • Dependence on multiple suppliers (pharmaceutical manufacturers) with varying negotiating power(p.134)
- • Regulatory requirements for Good Distribution Practices (GDP) compliance creating operational barriers(p.169)
- • Increasing competition from large retail chains and e-pharmacies disrupting traditional distribution models(p.167)
- • Working capital intensive business model requiring substantial cash management(p.120)
- • Intense competition from large, established pharmaceutical distributors(p.171)
- • Regulatory risks from evolving pharmaceutical distribution regulations(p.201)
- • Dependence on manufacturer pricing and supply arrangements(p.193)
- • Vulnerability to pharmaceutical price regulation(p.202)
- • Risk from e-commerce channel disruption in pharmaceutical distribution(p.172)
- • Operational and logistical risks affecting distribution capabilities(p.200)
- • Interest rate sensitivity with significant variable rate debt exposure(p.346)
- • Foreign exchange risk from potential international transaction exposure(p.346)
- • Liquidity and cash flow pressure from substantial lease liabilities(p.345)
- • Extreme fragmentation and low barriers to entry in pharmaceutical distribution(p.430)
- • Intense competition and pricing pressure in generic medicine segment(p.391)
- • Regulatory compliance requirements for warehousing and drug licensing(p.430)
- • Inventory risk including COVID-related goods write-downs(p.395)
- • Highly fragmented and competitive market with traditional local distributors holding 90-92% market share(p.464)
- • Industry consolidation and competition from strong national players and self-warehousing chain stores(p.464)
- • Dependence on suppliers' pricing and margin structures subject to market competition(p.435)
- • Regulatory risks including drug quality standards, legal metrology, and licensing violations(p.476)
- • Working capital management challenges with rising receivables and slow collection cycles(p.453)
- • External market factors including inflation, power tariffs, and manpower costs by state(p.436)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Prabhat Agrawal | Promoter/Promoter Selling Shareholder | 12.66% | [●] |
| Prem Sethi | Promoter/Promoter Selling Shareholder | 7.18% | [●] |
| OrbiMed Asia III Mauritius Limited | Corporate Promoter/Promoter Selling Shareholder | 57.27% | [●] |
| Prabhat Agrawal | Promoter/Managing Director and CEO | 12.66% | — |
| Prem Sethi | Promoter/Whole-time Director and Chief Operating Officer | 7.18% | — |
| OrbiMed Asia III Mauritius Limited | Promoter/Corporate Promoter | 57.27% | — |
| Prabhat Agrawal | Promoter | 12.66% | — |
| Prem Sethi | Promoter | 7.18% | — |
| OrbiMed Asia III Mauritius Limited | Promoter Group | 57.27% | — |
| PUFT | Promoter Group | 19.55% | — |
| Prabhat Agrawal | Promoter | — | — |
| Prem Sethi | Promoter | — | — |
| OrbiMed Asia III Mauritius Limited | Promoter Group | — | — |
| Prabhat Agrawal | Promoter | — | — |
| Prem Sethi | Promoter | — | — |
| OrbiMed Asia III Mauritius Limited | Promoter | — | — |
| Prabhat Agrawal | Promoter | — | 17.07% |
| Prem Sethi | Promoter | — | 8.61% |
| Orbimed Asia III Mauritius Limited | Promoter | — | 53.17% |
| Prasid Uno Family Trust | Promoter | — | 18.16% |
| Prabhat Agrawal | Promoter/Promoter Group | — | — |
| Prem Sethi | Promoter/Promoter Group | — | — |
| Prabhat Agrawal | Promoter/Promoter Group | — | — |
| Prem Sethi | Promoter/Promoter Group | — | — |
| Prabhat Agrawal | Promoter | — | — |
| Prem Sethi | Promoter | — | — |
| OrbiMed Asia III Mauritius Limited | Promoter Group | — | — |
Leadership
Prabhat Agrawal · Promoter
Prem Sethi · Promoter/Whole-time Director
OrbiMed Asia III Mauritius Limited · Promoter
Jayant Prakash · Vice President - General Counsel, Company Secretary and Compliance Officer
Chebolu Venkata Ramana Ram (CV Ram) · Group Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Entero Healthcare Solutions IPO FAQs
What is the lot size of Entero Healthcare Solutions IPO?
The minimum lot size of Entero Healthcare Solutions IPO is 11 shares. One lot costs ₹13,838 at the cut-off price.
When does Entero Healthcare Solutions IPO open and close?
Entero Healthcare Solutions IPO opened for subscription on 09 Feb 2024 and closed on 13 Feb 2024.
What is the listing date of Entero Healthcare Solutions IPO?
Entero Healthcare Solutions IPO listed on 16 Feb 2024.