Entero Healthcare Solutions slips below issue price on debut day

• The stock made a tepid debut as it listed at ₹1,146 as compared to its issue price of ₹1,258.
• The company’s marketcap is at ₹4,999, according to Bombay Stock Exchange.

The stock of Entero Healthcare Solutions fell 8.6% below its issue price, as it debuted on the exchanges on Friday. The stock closed at ₹1,149 as compared to its issue price of ₹1,258. Its marketcap is at ₹4,999 crore, according to Bombay Stock Exchange.

The grey market surprisingly has made no predictions either of listing gains or losses on the company’s debut.

The ₹1,600 crore issue was subscribed 1.53 times over the shares on offer. The company had mobilized ₹716 crore from anchor investors like Bajaj Allianz Life Insurance, SBI General Insurance and others; ahead of opening the issue for the public.

The listing performance of 2024’s market debuts have been mixed due volatile market conditions. The last three listings however gave tepid listing gains, with small finance banks falling below the issue price.

However, the tranche before that saw good listing gains. Apeejay Surrendra Parks, BLS E-Services and Nova Agritech have given good returns to investors.

Here are the listing gains of the last few market debuts

The issue is a combination of fresh issues and an offer for sale. The fresh issue of shares is worth ₹1,000 crore. It intends to use the net proceeds from the fresh issue towards re-payment and or prepayment, in full or part, of borrowings availed of the company and subsidiaries.

It will also be used to fund its long term working capital requirements, and pursue inorganic growth initiatives through acquisitions; apart from general corporate purposes.

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.