Entero Healthcare Solutions Limited

Entero Healthcare Solutions Limited IPO -IPO DETAILS 

Company Overview 

Entero ranks among the top three largest healthcare product distributors in India based on revenue. Founded by Prabhat Agrawal in 2018, the company aimed to establish a nationwide technological platform for integrated healthcare products. By FY23, Entero operated 73 warehouses across India, servicing pharmacies, clinics, and hospitals within its network. The company serves more than 81,400 retail customers and over 3,400 hospitals, collaborating with over 1,900 healthcare product manufacturers offering a wide range of over 64,500 stock-keeping units. 

Entero addresses India's fragmented distribution system, wherein pharmacy chains typically operate regionally, unlike in developed markets. Its national distribution network streamlines operations for manufacturers, who can then focus on a select few companies like Entero. Leveraging technology, Entero developed a direct B2B application called Entero Direct, providing customers with real-time visibility into product range, inventory levels, order status, promotional offers, and outstanding balances. Over the past five years, Entero has pursued aggressive market share acquisition by expanding its business through strategic acquisitions. To date, the company has acquired over 32 healthcare product distributors, further solidifying its position in the industry. 

Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. Repayment or prepayment of specific borrowings by the Company. 

2. Provision of funding for the long-term working capital needs of the Company and its subsidiaries throughout the fiscal years 2025 and 2026. 

3. Pursuit of inorganic growth strategies through acquisitions. 

4. Allocation of funds for general corporate purposes. 

Company Financials 

Key Performance Indicator 

Pros 

1. Entero has leveraged its proprietary technology platform to enhance business operations for its B2B clientele. 

2. Since its inception in 2018, Entero has rapidly emerged as India's largest and fastest-growing healthcare product distributor. Through its relentless pursuit of excellence and commitment to customer satisfaction, the company has solidified its position as a prominent player in the healthcare distribution sector. 

3. Entero has demonstrated swift expansion efforts, both through strategic acquisitions and organic growth initiatives. With a robust network of 73 warehouses, the company has already established a formidable presence across India, facilitating nationwide supply operations. 

4. The Indian healthcare market is currently characterized by significant fragmentation, posing challenges for pharmaceutical manufacturers dealing with multiple distributors. 

Cons 

1. Over the past three years, the company has faced ongoing losses primarily attributed to write-offs associated with its downsized ancillary business and the necessity to maintain substantial inventory levels. 

2. Operating within an industry demanding significant working capital investments, the company has encountered the need to take on debt to ensure adequate liquidity levels. 

3. Recent acquisitions undertaken by the company pose potential risks, as the outcomes and synergies derived from these acquisitions remain uncertain. Consequently, this represents a notable risk factor for the company's future performance. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”