Entero Healthcare Solutions Limited IPO Message Board (Page 7)

Looking at subscription figures, it appears majority will not apply at first place. Let's wait and watch.

When was the last IPO got cancelled due to low subscription in mainboard ?
Adani's one was almost cancelled due to low sub figures but then crossed minimum needed but he pulled through citing market sentiments.

​@ElDorado In year 2023 itself there were two mainboard issues that got cancelled. After Adani, it was PKH Ventures IPO which could get only 65% subscription and had to be cancelled eventually.

Not sure if Entero Healthcare will add to that list !

It is amusing that people see only 1 side of subscription figures that is public subscription
Entero has 2 components i.e. Fresh 1000 crores and OFS 600 crores
They have already received 45% of total issue i.e. 1600 into 0.45 which equals 720 crores.
Of the balance 55% i,e. 880 crore they have received 18% i.e. 158 crore
So adding these two numbers it turns to a figure of 878 crores. As per SEBI norms if the issue is for debt reduction then 75 percent of fresh portion is enough to make issue successful as they need not allocate fund for general corporate purposes normally 25%
So even with zero QIB at beginning of day 3 issue is going to sail through whether you like it or not

Now we have established that issue is going to be through then how one should react as investor. Now you have to take a call apply or not apply. Option of issue not going through does not exists now

Frankly i am impressed with this startup company. It is not easy to tie up so many acquisition which it has done. More impressive part it has done through Covid period when pharma distributors were riding a wave of health protection and so did not had any compulsion to sell other than for personal reasons

Entero is start of corproationsion of pharma distribution the way Popular vehicle is going to be for vehicle distribution

I have no issues with the applicant who want guarantee of listing premium. They are free not to apply

In my view it is an interesting play on emerging corporate style of operations for nearly 9 lakh pharmacies in the country.

Take your own call

​@arunARUN I'm on same boat - I think the biz is excellent, just that they're asking for an exorbitant price - at 3000 Cr MCap (as listed here on CG), would have gone FF but at correct MCap of 5500 Cr, struggling to justify.

How to wrap head around this? Whether I apply for long term or not, I need to be comfortable that I'm entering at a price where I can make money

One comparable is other good healthcare cos like Apollo, Max trade at 40-50 EV / EBITDA which is in line here, with faster growth for Entero

Also if most shares are with QIB & Anchors, that should prop up the price anyway? Any good historical IPOs where this has happened? Worth a punt even for the short term?

@arunArun - one of the condition for IPO to sail through is qib subscription has to be at least 90 percent. It was the reason for PKH to be withdrawn.

​@rohiitian  I can cite some exceptions where in views of members were not quite in line with performance on listing and thereafter :
> Glandpharma - there was noise it being Chinese funded and hence shouldn't be applied due to wrong sentiments. Investors who applied reaped bigger fruits.
> Mankind : everyone feared of business model with not owning manufacturing unit and more like trader- poor subscription , allotment to all and bumper profits , continuous great performance qtr after qtr......Entero to some extent can be compared withthis when we say they are traders
> Medanta : fear that not many hospitals and so on, poor subscription, bumper listing and doubled within one year , scaling new heights.
There is historical data of similar stocks like Jupiter hospital, rainbow etc etc .

BUT , will not take chance the way I took personally in all above as market sentiments are low and PE is too high with no GMP, unless @newgen consultancy  Force us to apply.
Best wishes !!

Wait till last day to see QIB numbers and then decide.

Employee ko force kar sakte hain

What a loophole promoters have found
"By saying the company is using funds to retire debt, they (promoters) are circumventing the law and reducing the share lock-in period from three years to 18 months," ~ Article

More of regulators told SEBI that, companies are giving wrong/fake reasons to raise the money.