Healthcare Products Distributor Entero Healthcare Files DRHP with SEBI

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Entero Healthcare Solutions, a healthcare products distributor backed by OrbiMed, has filed a draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI) on September 13, 2023.

The proposed initial public offering (IPO) comprises a fresh issuance of shares worth ₹1,000 crore by the company, and an offer-for-sale (OFS) of 85.57 lakh equity shares by 19 selling shareholders including promoters Prabhat Agrawal, OrbiMed Asia III Mauritius, and Prem Sethi.

The company may consider a fund raising of ₹200 crore via private placement, preferential allotment or rights issue, before the filing of the DRHP with the Registrar of Companies (ROC).

The net proceeds from the fresh issue will be used to repay debts amounting to ₹123.7 crore, and for long-term working capital requirements of ₹600 crore. The remaining funds will be used for inorganic growth initiatives through acquisitions, and general corporate purposes.

Entero Healthcare is a leading healthcare products distributor in India, with a customer base of over 81,400 retail pharmacies and over 3,400 hospitals. The company has a pan-India network of 73 warehouses and a technology infrastructure that supports its supply chain operations.

In FY23, Entero Healthcare reported revenue of ₹3,300 crore and an operating income of ₹2,522.07 crore. The company is profitable on a cash basis and has generated positive free cash flow in recent years.

ICICI Securities, DAM Capital Advisors, Jefferies India, JM Financial, and SBI Capital Markets are the merchant bankers to the issue.

The IPO is expected to be launched in the coming weeks.


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