Entero Healthcare Solutions Limited, one of the top three healthcare products distributors in India in terms of revenue in FY22, has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
The Company’s initial public offering comprises a fresh issue of up to ₹10,000 million and an offer for sale of up to 8,557,597 Equity Shares aggregating equity shares by selling shareholders.
The offer for sale comprises up to 534,082 Equity Shares by Prabhat Agrawal, Up to 7,500,000 Equity Shares by OrbiMed Asia III Mauritius Limited, up to 353,302 Equity Shares by Prem Sethi, up to 4,401 Equity Shares by Chethan M.P., Up to 1,320 Equity Shares by Deepesh T. Gala, Up to 8,802 Equity Shares by Hemant Jose Barros, Up to 4,401 Equity Shares by Hemant Jaggi, Up to 2,201 Equity Shares by K.R.V.S. Varaprasad, Up to 39,610 Equity Shares by K.E. Prakash and Up to 1,320 Equity Shares by Lavu Sahadev.
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.
Entero Healthcare Solutions Limited was founded in 2018 by Prabhat Agrawal, Promoter, Managing Director and Chief Executive Officer as well as Prem Sethi, Promoter, Whole-time Director and Chief Operating Officer, with the vision to create an organized, pan-India, technology driven and integrated healthcare products distribution platform that can add value to the entire healthcare ecosystem. The company helps healthcare product manufacturers by providing them with reach and accessibility to pharmacies, hospitals and clinics. 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. In FY 21, FY22 and FY23, the company catered to over 39,500, 64,200 and 81,400 retail customers, respectively, and over 1,600, 2,500 and 3,400 hospital customers, respectively. Further as of FY23, the company has supply relationships with over 1,900 healthcare product manufacturers that gives us access to over 64,500 product SKUs.
ICICI Securities Limited, Dam Capital Advisors Limited, Jefferies India Private Limited, JM Financial Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the issue.