Entero Healthcare Solutions IPO

Large Fragmented Market: The total market for pharmaceutical distributors in India is valued at Rs 2.7 trillion in the FY '23 and is expected to grow at 10% to 11% CAGR in next 5 years. This market remains very fragmented with traditional local distributors having a market share of 90% to 92%, with large / national distributors having a market share of 8% to 10%.

Largest Distribution Platform: Started in 2018, they are amongst the top three healthcare products distributors in India in terms of revenue in FY 2022, and reported an operating income of Rs 2522 Cr in FY 2022. They also achieved the fastest scale-up of operations among healthcare products distributors in India.

Inorganic Expansion: Given their track record in acquiring and integrating smaller distributors across India, they have been able to continuously attract distributors to be integrated with them.

Differentiated Business Model: Through their expansive nationwide distribution network, integrated technology platforms, relationships with retail pharmacies and hospitals and trained sales force, they are able to offer a variety of opportunities for brands to expand their footprint in India in a cost-efficient manner.

High Working Capital Requirements: Our operations are subject to high working capital requirements, and have incurred substantial debts. A major portion of working capital is utilized towards inventories. As of March 31, 2023, their working capital was Rs 635 Cr.

Past Losses: They have incurred losses in the Financial Years 2021, 2022 and 2023.

Negative Cash Flows: They've had net cash outflow from operating activities primarily due to increases in trade receivables and inventories. Any negative cash outflows from operating activities over extended periods, or significant cash outflows may impact business and operations. short term from investing and financing activities