Mumbai: Entero Healthcare Solutions Limited (EHSL) is coming out with its IPO of Equity shares priced at between Rs 1,195 to Rs 1,258 per share, aggregating to Rs 1,600 crores. The IPO will open on February 9 and close on February 13.
Prabhat Agrawal, Managing Director and CEO, Entero Healthcare Solutions Limited, said here recently that that the proceeds of this issue would be used towards payment of debt, funding long-term working capital requirements of the company and its subsidiaries during 2025 and 2026, pursuing inorganic growth initiatives through acquisitions and general corporate purposes.
With the company being among the top three in healthcare products distribution India, EHSL witnessed FY23 Revenue of Rs 33,002.7 million, FY 21-23 Revenue CAGR of 36.17% and Ad Rs 850 million FY23 ProForma Adjusted EBITDA, besides 37.66% Gross Profit CAGR.
While 81,400 retail pharmacies are catering to 3,000-plus manufacturers, real consolidation can happen in India which is facing fragmentation of the supply chain amidst pharma products also having short shelf life Agrawal said.
Describing the Pharma market as being worth $33.2 billion with annual growth rate of 12%, he said EHSL has a team which identifies growth and acquisition opportunities in the market.
“Our growth rate is three times more than the Industry’s growth rate and the working capital is the fuel to our business, where sales to turnover ratio has risen by six times” he said, adding “We are identifying opportunities for increasing our customer base, wallet share and geographic penetration while leveraging our technology.”
Replying to questions, he said the company had no plans toward global expansion and was instead concentrating aggressively on the Indian market. “We have a cold chain setup and our own logistics for the last mile efforts,” he added.
Meanwhile, global healthcare spending has been rising in sync with economic growth and increase in sedentary work has heightened the risk of chronic diseases, which is also raising healthcare spending.
The USA, UK, France and Germany are the top four nations with the highest healthcare expenditure as a percentage of GDP.
India’s public spending on healthcare services is much lower than that of its global peers with 2020 witnessing barely 3% of GDP being spent for this. It trails even developing countries like Brazil, Nepal, Sri Lanka, Malaysia and Thailand in this regard.
