Entero Healthcare Solutions Files Draft Papers With SEBI | Entrepreneur

Healthcare products distributor Entero Healthcare Solutions has filed preliminary papers with capital markets regulator Sebi to mop-up funds through an Initial Public Offering (IPO). The IPO comprises a fresh issue of equity shares worth up to INR 1,000 crore and an Offer For Sale (OFS) component of up to 85.57 lakh equity shares, according to the Draft Red Herring Prospectus (DRHP).

Those selling shares in OFS are promoters Prabhat Agrawal, Prem Sethi, and OrbiMed Asia III Mauritius Ltd, and other shareholders Chethan M P, Deepesh T Gala, Hemant Jose Barros, Hemant Jaggi, K R V S Varaprasad, K E Prakash and Lavu Sahadev

As per the statement, the company proposes to utilize the Net Proceeds from the offer towards the repayment/ prepayment of certain borrowings availed of by the Company and its Subsidiaries, towards funding working capital requirements of the Company, for general corporate purposes and to pursue inorganic growth initiatives through acquisitions.

The company may also consider a pre-IPO placement aggregating up to INR 200 crore, and if such a placement is completed, the size of the fresh issue will be reduced.

Entero Healthcare Solutions was founded in 2018 by Prabhat Agarwal and Prem Sethi. The company claims to be among the top three healthcare products distributors in India in terms of revenue in FY22. It reported an operating income of INR 2,522 crore in FY22. It further said, as of March 31, 2023, the company’s 73 warehouses located across the country, last-mile delivery infrastructure and relationships with pharmacies, hospitals and clinics enables healthcare product manufacturers to make their products available to a wide range of customers.

ICICI Securities Ltd, DAM Capital Advisors Ltd, Jefferies India Private Ltd, JM Financial Ltd and SBI Capital Markets Ltd are the book-running lead managers to the offer.