Cotec Healthcare Files DRHP For IPO To Raise Rs 295 Crore In Fresh Issue

Cotec Healthcare Ltd. filed its preliminary papers with capital markets regulator SEBI on Thursday to raise funds via an initial public offering. The public offer will include a mix of fresh issue of shares worth Rs 295 crore and an offer for sale up to 60 lakh shares by promoter-selling shareholders.

The equity shares are proposed to be listed on the National Stock Exchange of India Ltd and BSE Ltd. The company, in consultation with the BRLMS, may consider an issue of equity shares aggregating up to Rs 65 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.

The offer also includes a subscription reservation for eligible employees and offers a discount to the employees bidding in the employee reservation portion.

Harsh Tiwari and Vandana Tiwari are the promoters of the company offloading shares in the offer for sale.

Pantomath Capital Advisors Pvt. is the book-running lead managers for the issue and Kfin Technologies Ltd. will be the registrar of the issue.

Proceeds from the fresh issue worth Rs 226.25 crore will be used for setting up a new project aimed at enhancing existing manufacturing capacities and facilitating the manufacture of new products. A part of the funds will be used for the general corporate purposes.

The Dehradun-based company is a leading player in the contract development and manufacturing organisation industry in India. The company's offering includes formulation, loan licencing and commercial manufacturing of off-patent products, including complex generics, in more complex delivery forms, such as modified and sustained release forms, for institutional and private customers.

The revenue from operations in fiscal 2025 rose 39.3% to Rs 192.24 crore in comparison to Rs 137.99 crore. The profit for the financial year 2025 nearly doubled to Rs 20 crore from Rs 10 crore reported in the financial year ended March 2024.