Cotec Healthcare IPO: Files Draft Papers with Sebi

New Delhi, Sep 11 (PTI) Pharmaceutical company Cotec Healthcare Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).

The proposed IPO comprises a fresh issue of equity shares aggregating up to Rs 295 crore, along with an offer for sale (OFS) component of 60 lakh shares, according to the draft red herring prospectus (DRHP) filed on Thursday.

Under the OFS, promoters Harsh Tiwari and Vandana Tiwari will offload 30 lakh equity shares each.

The company proposes to utilise proceeds from the fresh issue worth Rs 226.25 crore for setting up anew project aimed at enhancing existing manufacturing capacities and facilitating the manufacture of new products. Besides, a portion of the proceeds will also used for general corporate purposes.

Cotec Healthcare is a leading player in the contract development and manufacturing organization (CDMO) industry in India.

Its CDMO offerings include formulation, loan licensing 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.

According to the F&S report, the Indian Pharmaceutical Market (IPM) is projected to grow from USD 16.6 billion in 2019 to USD 38.3 billion by 2029. The market is expected to expand at a CAGR of 8 per cent between 2019 and 2024 to reach USD 20.13 billion, and further accelerate at a CAGR of 9.5 per cent between 2024 and 2029.

Ranked third globally in terms of pharmaceutical production volumes -- driven by generics, over-the-counter (OTC) drugs, bulk drugs, and a robust contract research and manufacturing industry, the IPM is counted among the fastest-growing pharmaceutical industries in the world.

Pantomath Capital Advisors has been appointed as lead manager to assist the company's maiden public issue.