Rubicon Research sets price band at Rs 461-485 per share for Rs 1,377.5-crore IPO

Rubicon Research IPO News

Pharmaceutical company Rubicon Research is set to raise Rs 1,377.50 crore through its initial public offering (IPO), which will open for subscription on October 9.

According to the Red Herring Prospectus (RHP), the issue will close on October 13, while the bidding for anchor investors will open for a day on October 8.

The company has fixed a price band at Rs 461 to Rs 485 per share for its maiden public offering.

Rubicon Research's proposed IPO comprises a fresh issue of equity shares worth Rs 500 crore, along with an offer-for-sale (OFS) of shares valued at Rs 877.5 crore by the promoter, General Atlantic Singapore RR Pte Ltd.

Proceeds from the fresh issue amounting to Rs 310 crore will be used for debt repayment, with a portion allocated for inorganic growth through acquisitions, strategic initiatives, and general corporate purposes.

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In September, General Atlantic Singapore sold 28.89 lakh equity shares (1.86 percent stake) for Rs 140 crore at Rs 484.47 apiece to TIMF Holdings and 360 ONE, while in August, it transferred 51.60 lakh equity shares (3.3 percent stake) to Amansa Investments at the same price for Rs 250 crore.

Following the transfer, it remained the majority shareholder with 52.15 per cent of the company.

Apart from General Atlantic, other promoters of the company include Pratibha Pilgaonkar, Sudhir D Pilgaonkar, Parag S Sancheti, Surabhi P Sancheti, and Sumant S Pilgaonkar.

Rubicon Research is a pharmaceutical formulations company with a strong focus on R&D and innovation. Its portfolio includes an increasing number of specialty products and drug-device combination products targeting regulated markets, particularly the United States.

The company has also been expanding its manufacturing footprint. In June, it acquired Alkem Laboratories' formulations facility in Pithampur, Madhya Pradesh, in an all-cash deal worth Rs 149 crore.

It currently operates two US FDA-inspected R&D facilities — one in India and another in Canada — along with two manufacturing plants in India accredited by multiple regulatory authorities, including the USFDA, Maharashtra FDA (WHO-GMP), and Health Canada.

In terms of allocation, 75 percent of the issue size has been reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent for retail investors.

Rubicon Research is expected to make its stock market debut on October 16.