Cotec Healthcare Ltd Files DRHP for IPO

Cotec Healthcare Ltd, the pharmaceutical formulations manufacturer headquartered in Uttarakhand, has filed its draft red herring prospectus (DRHP) with the SEBI (Securities and Exchange Board of India) for its initial public offering (IPO). 

The company seeks to raise ₹295 crore through a fresh issuance of shares, with an offer-for-sale (OFS) of up to 6,000,000 shares, as per the DRHP. 

Harsh Tiwari and Vandana Tiwari are the promoters of the company and will be divesting their stake through the OFS route.

Cotec Healthcare Ltd IPO Details

According to the DRHP: 

• Cotec Healthcare Ltd’s IPO is a 100% book-building IPO and has proposed a fresh issuance of shares worth ₹295 crore at a face value of ₹5 per share. 
• There is also an offer-for-sale (OFS) of 6,000,000 shares. The company promoters will be divesting their stake via the OFS route (equally divided).
• The equity shares are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). 
• Pantomath Capital Advisors Private Limited is the sole book-running lead manager for the IPO. 
• KFin Technologies is serving as the registrar for the Cotec Healthcare Ltd IPO.

Utilisation of Proceeds

The company proposes to utilise the net proceeds from the IPO for the following purposes:

• Establishing a new project to enhance existing manufacturing capacity and manufacture new products.
• General corporate purposes.
• New facilities covering the penicillin portfolio, high-capacity OSD block, SVP line and a dedicated oncology line.

About Cotec Healthcare Ltd

Cotec Healthcare is headquartered in Uttarakhand and is India’s second-largest contract development and manufacturing organisation (CDMO) in terms of the number of dosage forms. 

The company has capabilities across 24 distinct types of formulations and offers products in various dosage forms. These include injectables, tablets, eye drops, capsules, ampoules, vials, ointments, dry and liquid syrups and infusions. The company has a manufacturing facility at Roorkee with an aggregate installed capacity of 4,051.38 million units. 

Cotec Healthcare Ltd also earned a net profit of ₹20 crore for FY25, while revenues from operations stood at ₹192.2 crore.