Rubicon Research IPO gets fully subscribed on Day 2; check latest GMP

Rubicon Research IPO receives 76% subscription on Day 2; check latest GMP

Pharmaceutical company Rubicon Research's initial public offering got fully subscribed on the second day of bidding on October 10.

The company's IPO got bids for 1,91,32,230 shares against 1,64,55,670 shares on offer, according to NSE data.

Retail Individual Investors (RIIs) quota received 3.2 times subscription, while the category for non-institutional investors garnered 136% subscription. The quota meant for Qualified Institutional Buyers (QIBs) got subscribed 38%.

Rubicon Research on Wednesday said it has mobilised Rs 619 crore from anchor investors.

Rubicon Research IPO Details

The company's Rs 1,377.5 crore initial public offering (IPO) has a fresh issue of equity shares worth Rs 500 crore and an Offer For Sale (OFS) of Rs 877.5 crore by the promoter, General Atlantic Singapore RR Pte Ltd.

Post the IPO, General Atlantic's shareholding is expected to reduce to over 35%.

The issue will conclude on October 13 and has a price band of Rs 461-485 per share.

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

Rubicon Research, in a public announcement on Wednesday, stated that Kotak Mutual Fund and Motilal Mutual Fund have together invested around Rs 169 crore in the pharmaceutical firm.

As part of the transaction, General Atlantic transferred a total of 34.86 lakh equity shares, representing a 2.25% stake, at Rs 484.47 per share, amounting to approximately Rs 169 crore.

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 formulation company with a strong focus on R&D and innovation. Its portfolio includes an increasing number of speciality 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.

Tt 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 USFDA, Maharashtra FDA (WHO-GMP), and Health Canada.

Rubicon Research GMP

According to InvestorGain, the Grey Market Potential (GMP) of Rubicon Research stood at Rs 111 as of October 10, 2:45 pm. The estimated listing price is expected to be Rs 596 based on the upper price band of Rs 485. The expected percentage gain per share is 22.89%.

With inputs from PTI