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Entero Healthcare Solutions IPO fully subscribed on final day despite muted NII participation

Entero Healthcare Solutions IPO fully subscribed on final day despite muted NII participation
Stock Market2 min read
  • The initial public offering (IPO) of Entero Healthcare Solutions was fully subscribed on day three.
  • The company had fixed a lot size of 11 shares, allowing investors to bid for a minimum of 11 shares and in multiples thereof.
  • The company had fixed the price band at ₹1,195 to ₹1,258 per equity share.
After a muted start, the initial public offering (IPO) of Entero Healthcare Solutions Limited has finally been fully subscribed on day three. The Entero Healthcare Solutions had received only 9% subscription on its first day.

While the IPO was fully subscribed, non-institutional investors (NIIs) did not fully subscribe to the shares reserved for them. Qualified institutional buyers (QIBs) stepped in on the final day to subscribe to the IPO.

The company had fixed the price band at ₹1,195 to ₹1,258 per equity share for its public offer which closed on Tuesday, February 13. The minimum bid quantity was set at 38 equity shares and in multiples of 38 equity shares thereafter.

While the total issue size is ₹1,600 crore, it includes a fresh issue of shares worth ₹1,000 crore and an offer for sale (OFS) of shares worth ₹600 crore.

Ahead of the IPO, the company raised ₹716.4 crore from anchor investors.

Of the total IPO size, 75% was reserved for QIBs, 15% for NIIs and 10% for retail individual investors.

The company had reserved shares worth ₹8 crore for employees. Additionally, a discount of ₹119 per equity share was offered to eligible employees.

Entero Healthcare Solutions IPO subscription status

Category

No. of times subscribed

Qualified Institutional Buyers

2.28

Non-institutional Investors

0.22

Retail

1.31

Employees

1.23

Total

1.53


Entero Healthcare Solutions, which was incorporated in 2018 is a distributor of healthcare products in India. It uses a technology-driven platform to facilitate distribution of healthcare products to hospitals, clinics and pharmacies across the country.

The company has relations with over 1,900 healthcare manufacturers across the country and caters to 3,400 hospitals and 81,400 pharmacies in 495 districts in the country as on March 31, 2023.

The company has 77 distribution warehouses across 38 cities.

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