2, March, 2024
HomeBusinessEntero Healthcare Solutions IPO Faces Subdued Interest Even on Day Two of Bidding

Entero Healthcare Solutions IPO Faces Subdued Interest Even on Day Two of Bidding

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The Entero Healthcare Solutions IPO is experiencing a lackluster response, persisting even on the second day of bidding, February 12. The Faridabad-based healthcare products distributor, aiming to raise Rs 1,000 crore through a fresh issue and an additional Rs 600 crore via the offer-for-sale (OFS) route, has witnessed minimal investor enthusiasm.

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Subscription data from exchanges reveals that investors have only chosen 12.3 lakh equity shares, constituting a mere 17 percent of the total offer size of 71.5 lakh equity shares.

Despite the muted overall response, retail investors and employees have shown more interest, collectively acquiring 79 percent and 68 percent of their respective portions. On the other hand, non-institutional investors, particularly high net worth individuals, have bid for only 8 percent of the allotted quota.

It’s noteworthy that qualified institutional buyers have not participated in the offer as of yet.

The healthcare products distributor, in its Rs 1,600-crore public issue, had a modest 10 percent subscription rate on the first day of bidding, which commenced on February 9.

The price band for the offer is set between Rs 1,195 and Rs 1,258 per share. The funds raised will be distributed with Rs 1,000 crore from the fresh issue, while the remaining Rs 600 crore will be through the OFS route. The selling shareholders in the OFS include prominent names like promoters OrbiMed Asia III Mauritius, Prabhat Agrawal, and Prem Sethi.

OrbiMed-backed OrbiMed Asia III Mauritius holds the majority stake with 57.27 percent in the company, contributing to the total promoters’ shareholding of 77.11 percent.

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Entero Healthcare Solutions plans to allocate Rs 142.5 crore of the fresh issue proceeds for debt repayment, Rs 480 crore for long-term working capital requirements, and the remaining fresh issue funds for inorganic growth initiatives through acquisitions and general corporate purposes.

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