Cotec Healthcare IPO

About Cotec Healthcare IPO

Cotec Healthcare IPO DRHP was filed on September 10, 2025 and the SEBI approval for the same was received on May 18, 2026. The dates for the IPO and the issue pricing are yet to be finalised by the company, in consultation with the lead managers. SEBI generally gives its approval for an IPO by conveying its observations, which is tantamount to an approval of the IPO. Face value is ₹5 per share.

The IPO of Cotec Healthcare consists of a fresh issue of ₹295 crore plus an offer for sale (OFS) of 60 lakh shares by the promoter shareholders. The total size of the IPO will be known after the price band is decided. As a result of the IPO, the total number of outstanding shares of Cotec Healthcare will increase from 1,142.06 Lakh shares depending on the number of fresh shares issued. The IPO will be a Book Built issue and the stock will be listed on the NSE and BSE mainboard segment.

Cotec Healthcare was incorporated in the year 1998 and it is a healthcare company focused on the fast-growing CDMO segment. Contract development & Manufacturing Organization (CDMO) outsources manufacturing, testing, and marketing on behalf of global pharma companies. It has CDMO capabilities across 24 formulations; including injectables, tablets, anti-asthmatic, cardio-vascular, dermatology, endocrinology, women’s health, clinical nutrition, vitamins etc. Its manufacturing facility is located at Roorkee, Uttarakhand; with installed capacity of 4,051 million units.

Objectives of Cotec Healthcare IPO

The company proposes to utilise the IPO fresh proceeds for:

• Capital Expenditure for setting up new project to enhance manufacturing capacity
• Capex for manufacture of new products
• General Corporate Expenses

Industry Outlook

CDMO is part of the pharma and healthcare industry, specialising in outsourcing the production, research, and marketing on behalf of global companies. Global pharma demand has got a boost in recent years due to a number of factors. These include a rapidly ageing population, rising prevalence of chronic diseases, lifestyle related health problems, spread of health insurance, proactive shift in healthcare after the pandemic, and massive pipeline of patent expiry for generics companies.

According to a report by Frost & Sullivan, the Indian pharma market has grown from $16.6 billion in 2016 to $24.3 billion in 2024. It is expected to further grow to $38.3 billion by year 2029. In India, therapy areas of pharma companies is spread evenly across Cardiovascular, Central Nervous System, Hormones, Vitamins/Minerals, Anti-Diabetic, and anti-infectives. In terms of dosage forms, oral solids account for over 70% of the market.

One of the big growth areas for India companies is going to be small molecule CDMO. With rising complexity in manufacturing, CDMO penetration has been rising. It has risen from 27.8% in 2019 to 32.3% in 2024; and is expected to further increase to 38.3% by 2029. CDMO offers cost efficiency and manufacturing optimization for global pharma. According to Frost & Sullivan estimates, global CDMO market has grown from $80.3 billion in 2019 to $104.8 billion in 2024; and is expected to grow to 145.8 billion by year 2029.

CDMO services in India have graduated from managing intermediates and APIs to full pharma solutions including manufacturing, regulatory support, customised packaging etc. The global small molecule CDMO market is equally divided between generics and Innovator products. Even in 2029, US will be the largest small molecule CDMO market, followed closely by Europe and then by Asia Pacific. The big drivers for CDMO growth will be accelerated time to market, scalability, adaptability, global reach, access to technical know-how, and long-term partnerships through customized models.

About Cotec Healthcare

Cotec Healthcare is the second largest player in the CDMO market in India in terms of number of dosage forms offered. Cotec Healthcare offers CDMO services across formulations, generics, off-patent products, loan licensing, commercial manufacturing etc. The company reported revenue CAGR of 52.7% between FY23 and FY25. For FY25, the company also recorded ROCE of 36.43% and ROE of 33.91%. The current IPO is intended to expand its footprint in CDMO for specialized products.

Cotec Healthcare was promoted by Harsh Tiwari and Vandana Tiwari. Out of the OFS of 60 lakh shares, both the promoters will be offering 30 lakh shares each. For specialized products, Cotec Healthcare is setting up a new project which is EU-GMP compliant; including a high-capacity OSD block, dedicated oncology unit, and a comprehensive penicillin portfolio. Nearly 92% of the revenues of the company comes from repeat customers, while its debt/equity ratio has been controlled at just about 0.44X.

Strengths of Cotec Healthcare

• It is the second largest CDMO player with a full-stack product portfolio
• Due to strong relationships with customers, entry and exit barriers are quite strong
• Manufacturing capacity is diverse and also scalable
• Financials are testimony to profitable growth of the business
• Experienced promoters with deep domain knowledge

Risks of Cotec Healthcare

• The high proportion of repeat customers, implies limited onboarding of new customers
• It is a very compliance heavy business with strong regulations and stringent oversight
• Global trends like the US preferring local manufacture is a big risk for CDMO
• Its proportion of raw material cost is quite high at over 60% of sales value
• Its product contribution to revenues continues to be dominated by tablets, up to 47%
• Pharma supply chains have been disrupted by the ongoing Middle East war, especially APIs
• CDMO agreements have strict contractual obligations, with penalties for service deficiency
• Risk of compensating principals for non-compliance, product shortfalls, complaints etc

Anchor Investor Bidding Date

Anchor portion of the IPO – To Be Announced (TBA)

Registrar Details
Kfin Technologies Ltd
Email: cotechealthcare.ipo@kfintech.com
Phone: 04067162222, 04079611000

Book Running Lead Managers
Pantomath Capital Advisors Private Ltd

Cotec Healthcare Contact Details
Kishanpur, Bhagwanpur, NH-74 Roorkee Dehradun Highway, Bhagwanpur Haridwar, Roorkee, Uttarakhand, 247661
Email: secretarial@cotec.in
Phone: +91 133 223 2248

Business Model

The business model is to focus on the highly lucrative and fast growing CDMO segment of healthcare by offering clients a wide range of product and service offerings; including manufacture, compliance, and specialized packaging solutions. It has presence across over 24 product categories.

While bulk of the CDMO business in India still pertains to APIs and intermediates, the shift towards more complex products has been quite rapid. Cotec Healthcare is preparing itself to take on the more specialized part of the business globally. The profitable track record is evidence of that.

Company Growth Trajectory

The revenue from operations of Cotec Healthcare have grown between FY23 and FY25 from ₹82.42 crore to ₹192.24 crore, the PAT has grown from ₹5.03 crore to ₹20.00 crore. EBITDA grew from ₹9.51 crore to ₹31.44 crore in this period.

Over the last 3 years between FY23 and FY25, the EBITDA margins have grown from 11.54% to 16.36%, while the PAT margins have also grown from 6.11% to 10.40%. The debt/equity ratio of the company has been stable around 0.40X to 0.44X during this period.

Market Position

In terms of product coverage, Cotec Healthcare is the second largest CDMO player in India today. It caters to the traditional generics/API market as well as to the specialized CDMO market with offerings across tablets, injectables, vitamins etc.

The products cater to a segment that is highly demanding, fast growing, and where performance has a lot of business criticality for clients. Cotec Healthcare manufacturing operations are conforming with ISO 9001:2015 (quality management systems), ISO 14001:2015 (environmental management systems), and ISO 45001:2018 (occupational and safety management systems).

How to Apply for Cotec Healthcare IPO?

• Step 1: Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.