IPO watch: Entero Healthcare Solutions stock listing today. Here's what its GMP suggests

Entero Healthcare Solutions Ltd is set to make its market debut today. If one goes by grey market trends, a muted listing is likely. The stock was commanding a thin grey market premium (GMP) of Rs 2 over the issue price of Rs 1,258, suggesting a flattish debut. The Rs 1,600 crore initial public offer (IPO), which ran from February 9 to February 13, was sold in the Rs 1,195-Rs 1,258 price band. The basis of allotment for the same was done on Wednesday while shares were credited to investors demat accounts on Thursday.

The IPO had received a muted response from investors, with the quota reserved for non institutional investors getting undersubscribed. The issue had asked for a PE of 111.2 times at the upper price band based on FY24E earnings. Overall, the IPO was subscribed 1.53 times. 

Entero Healthcare Solutions' focus is to create an organised and technology-driven healthcare product distribution platform that serves the entire healthcare ecosystem pan-India, said a brokearge.

"The company’s pan-India approach to acquiring and integrating smaller distributors has increased its geographic reach and has grown its customer base. The company uses growth strategies such as product port-folio expansion, increased customer reach, improved service levels, and technology-based solutions to boost its market share. The company replicates this approach while expanding into new geographies and continuously attracting collaborations from the distributors. The company also has a record of sustained consolidated revenue from operation, growing at a CAGR of 36.2 per cent during FY21-23," BP Equities said in a note.

"Looking at the industry growth, Entero, which is one of the largest and fastest-growing healthcare product distributors, is expected to grow from 8-10 per cent in FY23 to 20-30 per cent by FY28. Going ahead, the improvement in operational performance is anticipated to be driven by a wide range of products offered, operations aimed at providing high fill rates to customers, technology-driven inventory management and order placing mechanisms for customers, economies of scale advantage, and competitive and transparent pricing," the brokerage noted. 

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