Rubicon Research shares make strong market debut, settle 30% higher than IPO price

Rubicon Research listing ceremony at NSE

The shares of Rubicon Research made a strong stock market debut on October 16, listing at Rs 620 apiece on NSE. This marks a premium of 27.84 percent over the IPO price of Rs 485 apiece. The shares then rose around 2 percent to close at Rs 632 apiece, marking a rise of 30 percent over the IPO price.

On BSE, the shares listed at Rs 620.10 apiece, marking a premium of 27.86 percent over the IPO price. The market capitalization of the stock during debut stood at Rs 10,216 crore.

After the debut day, the stock's mcap stood at Rs 10,412.22 crore.

The listing premium however, slightly missed grey market estimates. Ahead of listing, the unlisted shares of the company were trading with nearly 30 percent grey market premium (GMP) over the IPO price, according to data on Investorgain.

According to IPO Watch, the unlisted shares of the company were trading with nearly 30 percent GMP over the issue price.

Rubicon Research launched its initial public offering to raise Rs 1,377.50 crore through a fresh issue of shares worth Rs 500 crore and an offer for sale (OFS) of shares worth Rs 877.5 crore worth shares by promoter General Atlantic Singapore RR. The price band for the IPO was set at Rs 461-485 per share.

The maiden public issue of the company saw strong investor interest during its three days of public bidding, being subscribed 48 times between October 9 and October 13. Non-institutional investors showed the most interest, subscribing their reserved portion over 80 times.

Rubicon Research aims to use Rs 310 crore of the fresh issue proceeds for repayment of its certain borrowings, and the remaining amount for inorganic growth through unidentified acquisitions and general corporate purposes.

"With almost 98% of revenues derived from the U.S., the company exhibits robust international competitiveness, although geopolitical and regulatory risks exist...The IPO highlights the appeal of a scalable, high-margin business, offering investors a chance to diversify into markets enjoying foreign inflows and long-term growth opportunities," said Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakara.

HDFC Securities in its note said that Rubicon Research was the fastest growing Indian pharmaceuticals formulations company between fiscal years 2023 and 2025, with a total revenue CAGR of 75.89%, which was over seven times higher than the average of 11 companies.

"Rubicon Research has established robust sales and distribution capabilities in the US, anchored by its wholly-owned subsidiary, AdvaGen Pharma. AdvaGen markets non-branded prescription products to a diverse customer base that includes wholesalers, group purchasing organizations (“GPOs”), and pharmacy chains," it said.

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