Cotec Healthcare Ltd, one of India’s fastest-growing contract development and manufacturing organizations (CDMO), has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹295 crore through a fresh issue of equity shares. The Roorkee-based pharmaceutical player aims to utilize the proceeds to expand its manufacturing footprint, invest in research and development, and repay outstanding borrowings.
The IPO will be managed by GYR Capital Advisors as the book-running lead manager, with KFin Technologies acting as the registrar. The offering consists solely of a fresh issue, with no offer-for-sale (OFS) component, signaling the company’s intent to channel funds directly into growth initiatives.
“Our IPO marks a strategic inflection point. We are committed to scaling our CDMO capabilities and delivering high-quality, affordable healthcare solutions globally,” said Cotec Healthcare’s Managing Director, Dr. Ramesh Choudhary.
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🧭 Cotec Healthcare IPO Timeline and Key Details
| Event | Date (Tentative) | Description |
|---|---|---|
| DRHP Filing Date | September 11, 2025 | Filed with SEBI |
| IPO Opening Date | October 2025 | Final dates to be announced post approval |
| IPO Size | ₹295 crore | Entirely fresh issue |
| Registrar | KFin Technologies | Handling allotment and refund |
| Lead Manager | GYR Capital Advisors | Sole book-running lead manager |
| Listing Exchange | NSE and BSE | Mainboard listing planned |
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🔍 Cotec Healthcare IPO Objectives
| Use of Proceeds | Allocation (₹ crore) | Strategic Purpose |
|---|---|---|
| Manufacturing Expansion | ₹120 | New dosage lines, sterile injectables |
| R&D Infrastructure | ₹80 | Formulation development, bioequivalence labs |
| Debt Repayment | ₹55 | Reduction of interest burden |
| Working Capital | ₹30 | Raw materials, operational liquidity |
| General Corporate Purposes | ₹10 | Brand building, digital transformation |
The company plans to expand its Roorkee facility and set up a new unit in Gujarat for high-potency APIs.
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📉 Cotec Healthcare Financial Snapshot
| Financial Year | Revenue (₹ crore) | EBITDA (₹ crore) | Net Profit (₹ crore) | YoY Growth (%) |
|---|---|---|---|---|
| FY 2023 | ₹178.4 | ₹32.6 | ₹14.2 | — |
| FY 2024 | ₹246.8 | ₹48.9 | ₹22.7 | +59.8% |
| FY 2025 (Q1) | ₹68.3 | ₹13.1 | ₹6.4 | — |
Cotec has maintained EBITDA margins above 19% and has doubled net profits over the past two fiscal years.
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📦 Cotec Healthcare Business Overview
| Segment | Description | Key Clients / Projects |
|---|---|---|
| CDMO Services | End-to-end drug development and manufacturing | Domestic pharma majors, US generics market |
| Dosage Forms | Tablets, capsules, injectables, soft gels | 300+ formulations across 12 therapeutic areas |
| Export Markets | US, EU, Africa, Southeast Asia | 40% of revenue from regulated markets |
| R&D Capabilities | Formulation, stability, bioequivalence studies | 3 patents filed, 2 DMFs submitted |
Cotec is India’s second-largest CDMO by dosage form count and is expanding into oncology and biosimilars.
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🔥 Industry Outlook and Competitive Position
- CDMO Market Growth: India’s CDMO market is projected to grow at a CAGR of 12.5% to reach $20 billion by 2030.
- Regulatory Strength: Cotec holds WHO-GMP, EU-GMP, and US FDA approvals for multiple facilities.
- Innovation Focus: The company is investing in AI-driven formulation design and continuous manufacturing.
- Global Expansion: Plans to enter LATAM and MENA regions through strategic partnerships.
Cotec competes with players like Syngene, Piramal Pharma Solutions, and Amanta Healthcare in the CDMO space.
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🧠 Expert Commentary on Cotec Healthcare IPO
| Expert Name | Role | Comment |
|---|---|---|
| Meera Iyer | Pharma Equity Analyst | “Cotec’s IPO is well-timed given the CDMO boom and its strong export pipeline.” |
| Rajiv Bansal | Healthcare Investment Advisor | “The company’s financials and regulatory track record make it a compelling mid-cap bet.” |
| Dr. Rakesh Sinha | Pharmaceutical Economist | “India’s CDMO sector is maturing—Cotec is riding the wave with precision.” |
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📅 Upcoming Milestones for Cotec Healthcare
| Event | Date | Strategic Importance |
|---|---|---|
| SEBI Approval | Late Sept 2025 | Clears path for IPO launch |
| IPO Launch | October 2025 | Investor bidding begins |
| Allotment Finalization | October 2025 | Basis of allotment published |
| Listing on NSE/BSE | October 2025 | Shares begin trading |
| Gujarat Facility Groundbreaking | Q1 2026 | Expansion into high-potency APIs |
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📌 Conclusion
Cotec Healthcare’s ₹295 crore IPO marks a significant milestone in its growth journey as a leading CDMO player in India. With strong financials, a robust export pipeline, and a clear roadmap for expansion, the company is poised to attract investor interest across institutional and retail segments. As the IPO gears up for launch, Cotec’s strategic focus on innovation, compliance, and global reach positions it as a key player in India’s pharmaceutical manufacturing renaissance.
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Disclaimer: This article is based on publicly available DRHP filings, financial reports, and expert commentary as of September 12, 2025. It is intended for informational purposes only and does not constitute investment advice.
