Cotec Healthcare files DRHP with SEBI to raise funds through IPO
The company proposes to utilise the proceeds for setting up a project to enhance existing manufacturing capacities
Cotec Healthcare Ltd has filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).
The proposed IPO comprises a fresh issue of equity shares of Rs.295 crore, along with an offer for sale (OFS) component of 60 lakh shares. Under the OFS, promoters Harsh Tiwari and Vandana Tiwari will offload 30 lakh equity shares each.
The company will utilize the funds to set up a project to enhance existing manufacturing capacities and introduce new products. A portion of the proceeds will be for general corporate purposes.
Pantomath Capital Advisors has been appointed as the lead manager to assist the maiden public issue.
The pharmaceutical company is a leading player in India’s contract development and manufacturing organization (CDMO) industry. Its offerings include formulation, loan licensing and commercial manufacturing of off-patent products, including complex generics in complex delivery forms such as modified and sustained release forms, for institutional and private customers.
Meanwhile, the Indian Pharmaceutical Market (IPM) is projected to grow from USD 16.6 billion in 2019 to USD 38.3 billion by 2029. It expanded at a CAGR of 8 percent between 2019 and 2024 to reach USD 20.13 billion and accelerate at a CAGR of 9.5 percent between 2024 and 2029.
In terms of pharmaceutical production volumes, IPM ranked third globally, driven by generics, over-the-counter drugs, bulk drugs, and a robust contract research and manufacturing industry. Globally, it is among the fastest-growing pharmaceutical industries.