Entero Healthcare Solutions Limited IPO Message Board (Page 10)

Retail shares offered 14.2%?

Retail quota is 12,65,501 shares (9.95% of the total issue size), not sure why CG is showing it as 14.2% as for this issue retail reservation can not be more than 10%

​@Admin @ Chittorgarh.com  Request clarify

6 year old health care products distributor, among the top 3 in India.
Company caters to 73700 + retail customers (medical shops), 2800+ hospitals and sources its products from 1900+ pharmaceutical and health care companies.
Share of own brands business out of total revenue is not provided. Sales through its B2B application (Entero Direct) was Rs 257 cr for H1FY24 (13.5% of sales)
IPO is a mix of OFS of Rs 600 cr and Fresh Issue of Rs 1000 cr.
Fresh issue funds will be used for debt repayment, working capital needs, acquisitions and general corporate purposes.
Debt to be repaid, Rs 142.5 cr, carries interest rate of 13.5% to 16%. FY25 profits likely to improve by approx. Rs 20 cr.
Estimated turnover for 24-25 is Rs 7700 cr, based on working capital projections
Decent anchor book, as pointed out by fellow boarders no MF participation.
Out of total assets of Rs 1216 cr, as on 30-Sep-23, Inventory and Reiceivables are Rs 1017 cr. Next big item is unamortized goodwill of Rs 168 cr which is basically payment in excess of fair value of assets / companies acquired.
Company has 38 subsidiaries in various states, most of which appear to be buy outs of large pharmaceutical distributors in various states. Further the company has another 17 acquisitions in pipeline where it has signed non binding term sheets.
Company had 3181 employees as on 30-Sep-23.
High employee attrition rate, for 21-22 it was 44%, for 22-23, it was 46.5% and for H1FY24 it was 19.6%. In 2 ½ years, 100% employees of the company have been replaced with new ones.
Material cost as % of revenue was 91% for H1FY24, 91.8% for 22-23, 91.7% for 21-22.
Poor cash flow, year on year increase in receivables and inventory puts strain on financing.
Company has provided for gratuity and leave encashment for Rs 7.5cr but has not funded the same.
Seems company has reversed provision for sales return by Rs 3.3 cr for 22-23 and Rs 2 cr for H1FY24 which would boost the profitability.
Other expense were Rs 76.2 cr for 22-23 and Rs 41.5 cr for H1FY24. Business promotion expense was Rs 6.6 cr for 22-23 and Rs 2.2 cr for H1FY24. Such reduction for a hyper growth business seems strange and it has boosted H1FY24 profitability.
Company has booked stock option expense of Rs 20 lacs, for the 1st time, in H1FY24. Quantum of such expense, going forward, will have to be seen along with its impact on profitability.
Receivables as on 30-sep-23 are Rs 630.49 cr, after bad debt provision of Rs 16.2 cr. Rs 28 cr of these receivables are 6 mths to 1 year old while Rs 32.6 cr is more than 1 year old. For a distribution business with slim margins, such high old receivables are a concern.
Share of business from / to top 10 customers & vendors not disclosed in prospectus.
117 cases by and against the company, its promoters, its subsidiaries involving various laws. Medico legal liability could turn out to be large risk if not managed properly.
Company has not shared bank wise facility wise interest rate on borrowings. Its borrowings carry interest rate of 8.65% to 16%.

If im not wrong, then company is more into acquisition of local distributors. They have acquired 38 entities from 2018 !!
They are more into acquisition based strategy hence such growth on topline, debt on books.
Thanks @YBPK for data.

Which bank is good for opening minor trading account ? Thanks

I am sharing the time wth in which we have appy for ipo based on my experience -
Kotak - Reail 4 pm, HNI - 3 pm
State bank - 2 pm for all
ICICI - 3 pm for all, sometimes upto 3.30 pm given for each ipo in website clearly

Correct me I al wrong. I request you to all share the last day timings of other banks based on their experience.. Thanks

Thanks for sharing details for few banks. Can anybody share the last day application ipo timings of following banks -
1. Indusind bank
2. Canara bank
3. Indian bank
4. Axis bank
5. AU Bank
6. Equitas bank
7. Bank of baroda

bob 3pm for all

GMP only 5 today

GMP

Tata …. Bye Bye

Accha Chalta hoon ….. Dua main yaad rakhna

But still I personally feel it’s an IPO for risk takers … Should give decent gains

Yes sir just checked it.. Now 5 😱

From 160-170 to 5 is huge fall..

After reading some of the posts below, I am sharing some facts and figures of past IPOs of big pharma companies. These are :
1. GLAND PHARMA : A pharma manufacturing company of big size IPO of 6,480 crs. Has big OFS size with fresh also. A profit making company with good PAT. The retail quota was 50% for a big size issue. Unfortunately the retail quota was subscribed only 0.24x. Means undersubscribed. All got full allotment. Issue price 1,500, listed at 1,700 and closed 1,820.
2. MANKIND : Again a big size IPO of 4,326 crs. but less than Gland. A manufacturing, marketing and developing company. Again profit making and good PAT. Retail quota was 35%. Subscribed 0.92x, undersubscribed. Appl. wise it was 0.43 (for information only). In terms of domestic sales ranked 4th for f y 22. Issue price 1,080, listed at 1,300 and closed at 1,424.
3. Global Health : not a pharma manufacturing but a hospital. A very good hospital but undersubscribed retail portion due to valuation and issue price, etc. Got listed very well and now the share price is a history. Good is always good.
Now, this is the time to compare ENTERO HEALTHCARE. A small size issue in comparison to first two. Not a manufacturing but a business of distribution. Loss making company with negative PAT. Not very big size with combination of fresh and ofs. On the first day subscription not impressive. Price, daring of a loss making company managemen.. Advisors again great. Not impressive IPO in my opinion. Listing can be managed. As far as the subscription is concerned, the company always comes with IPO with well planned strategy and sail through in any condition. Only retailers have to be very careful.
To expect listing in lines with any first two companies is not expected at present. Exceptions are always there.
Again a long post due to information of many companies. Again sorry but could not stop sharing. My thinking and not to contradict any member in any way.
Thanks.

While i am not commenting on fact i have question on your statement that listing can be managed . May be yes in T2T segment but on main board which sees nearly 80 90 percent trade of allotted share it will be a fool who will attempt so?
Please see day 1 delivery number then say how listing can be managed. All grey saudas get closed by selling. If it opens at high profit all non lockin QIB walk out

Sorry sir, data does not support you

​@arunARUN Thanks for your post. Not an argument. "Can be managed". It is not will be managed. Even I have not said at higher or lower level. I have thoght about the possibility in prevailing conditions. It can be or cannot be. From the time of Harshad Mehta every thing is managed in the Share Market. Not going to say anything about other field. All are very well aware. Just remember the words of Nepoleon Bonaparte the great :

** The word IMPOSSIBLE is not in my dictionary**

But I am too small to say such word. My experience from the time of Harshad Mehta. I am a small investor also with old memories. No question of any "sorry".

Again, not in favor of argument. Have a nice time.

Thanks.

​@Admin @ Chittorgarh.com Can you recheck market cap 3021 cr you mentioned is right?

​@Asoke sarkar Thanks for your response. However, confusion regarding Market Cap at upper price band has increased further. Which one is correct? What you mentioned/ or what DD Sir's review in CG/ or what ICICI Direct has furnished / or something else.
Waiting clarification from@Admin @ Chittorgarh.com

Pre issue 35,543,198 shares, fresh 7,949,125. Total shares 43,492,323 at upper price band 1258, Mcap 5471.34cr

ENTERO HEALTHCARE
GREY MARKET में हेल्थ बिगड़ गया है😧
₹62/= 63/= में भी बहुत कम लोग👫👬👭 इलाज करवा रहे हैं!

​@Rakcyt  😆 😂

Grey Market ने पहले हेल्थ बिगाड़ा और अब लिस्टिंग पर तो ICU में!
छूआछूत कि बिमारी से दूर रहें!

Quadria Capital Backed

Akums Drugs And Pharmaceuticals Limited To File For DRHP Soon

Akums has a manufacturing share of more than 12.5% of the total drugs consumed in India and Leading CDMO

IPO Size - 1600-2500 cr*
Retail - 10%

FY 23 :
Revenue - 3660 cr*
PAT - 100 cr*

​@newgen consultancy Sir u did beat me on posting 'me barbaad hona chahta hu' meme by some seconds as I was busy looking for perfect picture 😅..but from that I presumed that we both can think about same thing at same time..😜😂

Absolutely Sir 😃

DISCOUNT 100%

​@diwan kapoor Thanks for your response🙏
Agreed, there should not be any personal comments against anyone and I do not think I ever indulged in same knowingly. That surprise remark was just a light hearted comment. Apologies, if you didn't like it. Look forward to continued guidance from respected members.

​@Chhote Lal 🙏🙏

This will go like gland Pharma
No one interested but undercurrent positive 🔥

With due respect @CrowSir
I have clearly mentioned in same thread that it's only sentimental comparison and not fundamental.

For setting wrong precedent?
I have not sent any advice

For new investors who apply blindly?
Well
Investment should not done blindly, either IPO or GOLD or any other instruments.

If someone do so,
It's upto them to face consequence

Hope I have clear my side

​@Crow Agreed your views

Entero me Enter(h)o ya na (h)o?
Looks interesting as of now..😊

Risky hain...ipo agar mila to jabardasti ka long term investor Banna padega..

​@Tejas Pandya It will decide by last day last bour

Where is DD Sir's review.... First time it's missing in any IPO.

​ @nausikhiya Review is available now.

Will this ipo be under subscribed?

yes mainly because of 10% in retail.

​@Np patel If so. If would be first time for me to witness it.

​@Dilip Davda  sir ur review on Entero health also please thanks

Review is available now.

The audacity of this company whose PBT in the last 12 months was a mere 17 crore to bring an IPO at such a high PE is obscene. As of now, the only positive for retailers is the 10% quota but I would still be wary.

But MedPlus came at similar valuations and issue size, but had a customer facing pharmacy vertical. So need to study more. Thanks.

​@PinkuSinghji, and the borrowing is growing consistently too. I don't care about big revenue numbers if it's not translating much to profits.

Medplus gained 7% today but still below issue price.

This forum has lost mojo. See total number of comments on it.
People are discussing but seem to throw their opinion as last word

Any way good till it lasts. May be it is a time to bid goodbye

​@arunARUN You are right. The quality of comments has gone down in the past year. Specially after @Aniketiaf got banned. Also your comments have reduced too.....

​@PKRAJ  Its completely correct to say that "The members who have stopped posting are the root of this forum."
I still remember the level of quality discussion on the forum was top notch. There were some instances where discussion was not limited upto financial but also on qualitative factors for eg. members shares images of the company and inventory from own sources to satisfy that the company is genuinely working. Now I hardly found such level of analysis.

​@Ashish Khater I always miss @Aniketiaf . He is gem of this forum.

& aslo miss Analysis of expected subscription and GMP calculation from @Eagleye .

Every company is good in Bull market, and most company are bad in Bear market. For this one you decide, Its belong to which category.

DD sir,
Pl post your Review and Recommendation.

Review is available now. Have you gone through it?