IPO Alert: Cotec Healthcare Files Draft Papers With SEBI to Raise Funds

Cotec Healthcare Ltd, a Dehradun-based pharmaceutical manufacturer, has filed its draft papers with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). 

The proposed listing will be on both the NSE and BSE, positioning the company for its next phase of growth after reporting strong financial performance in fiscal 2025.

IPO Structure and Promoter Details

The upcoming IPO will include a fresh issue of shares worth ₹295 crore, along with an offer for sale (OFS) of up to 60 lakh shares by promoters Harsh Tiwari and Vandana Tiwari. The company is also considering a pre-IPO placement of up to ₹65 crore, which would reduce the size of the fresh issue if completed. 

In addition, a portion of the offer will be reserved for employees, who will receive a discount when bidding in this segment. Pantomath Capital Advisors Pvt. has been appointed as the book-running lead manager, while Kfin Technologies Ltd. will act as the registrar for the issue.

Fund Utilisation and Business Model

Of the total proceeds, ₹226.25 crore has been earmarked for setting up a new project to expand existing manufacturing capabilities and facilitate the production of new products. The remaining funds will be used for general corporate purposes. 

Cotec Healthcare is a recognised player in the Contract Development and Manufacturing Organisation (CDMO) space, providing services in formulation, loan licensing, and commercial manufacturing. Its expertise lies in complex generics and advanced delivery systems such as modified and sustained release forms, catering to both institutional and private customers.

Financial Performance and Growth Outlook 

The company delivered a strong financial performance in FY25, with revenue from operations rising 39.3% to ₹192.24 crore, compared to ₹137.99 crore in FY24. Net profit nearly doubled, reaching ₹20 crore in FY25 against ₹10 crore in FY24, highlighting its growing profitability. The planned IPO aims to support further expansion and reinforce its position in the Indian CDMO industry.

Read More: NSE IPO: CEO Eyeing Listing Within 8–9 Months Post Regulatory Clearance!

Conclusion

With its IPO plans, Cotec Healthcare is set to strengthen its balance sheet while giving investors access to a growing pharmaceutical manufacturer. Backed by steady growth in revenue and profits, and with a focus on scaling operations through new projects, the company is well-positioned to capitalise on opportunities in India’s evolving healthcare and CDMO space.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.