Entero Healthcare Solutions Ltd will make its market debut today. Based on gray market trends, a subdued price is likely. The stock fetched a low gray market premium (GMP) of Rs 2 against the issue price of Rs 1,258, indicating a flat debut. The Rs 1,600-crore initial public offering (IPO), which ran from February 9 to 13, was sold in the price range of Rs 1,195 to Rs 1,258. The allotment basis for the same was decided on Wednesday while the shares were credited to investors' demat accounts on Thursday.
The IPO received a lukewarm response from investors as the quota reserved for non-institutional investors was signed. The issue required a P/E ratio of 111.2 in the upper price band based on FY24E results. In total, the IPO was subscribed 1.53 times.
Entero Healthcare Solutions' focus is on creating an organized and technology-driven healthcare product distribution platform that serves the entire healthcare ecosystem across India, a broker said.
“The company’s pan-India approach to acquiring and integrating smaller distributors has expanded its geographical reach and expanded its customer base. The company is leveraging growth strategies such as product portfolio expansion, greater customer reach, improved service levels and technology-based solutions to increase its market share. The company continues this approach, expanding into new regions and continually winning collaborations with distributors. The company also boasts a record of sustained consolidated operating revenues that grew at a CAGR of 36.2 per cent in FY21-23,” BP Equities said in a statement.
“Looking at the industry growth, Entero, one of the largest and fastest growing healthcare product players, is expected to grow from 8-10 percent in FY23 to 20-30 percent in FY28. It is expected to grow operationally Performance driven by a wide range of products offered, operations aimed at providing high fulfillment rates to customers, technology-driven inventory management and order placement mechanisms for customers, economies of scale, and competitive and transparent pricing are noted brokers.
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