Subscribe for Rubicon Research Ltd IPO; Choice Equity Broking

Choice Equity Broking, Rubicon Research Ltd

Rubicon Research Ltd. (RRL) incorporated in 1999, it is a pharmaceutical formulations company, driven by innovation through focused R&D, with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets and in particular the United States. The issue is a combination of fresh issue (Rs. 500cr) & OFS (Rs. 877.499cr). The company will not receive any proceeds of the OFS. From the fresh issue net proceeds, the company will be utilizing Rs. 310cr for prepayment or scheduled repayment of all or a portion of certain outstanding borrowings availed by the company. Residual proceeds will be used for general corporate purposes.

Valuation and Outlook

Valued at a premium with a P/E of 52.5x (TTM EPS Rs. 9.2) and an EV/Sales ratio of 6.1x, RRL trades at a higher multiple compared to its industry peers. However, its strong brand equity, and expanding portfolio in high-growth B2B segments justify this valuation. Given its consistent performance, strategic initiatives, and favorable industry tailwinds, RRL is well-positioned for long-term value creation. We therefore recommend a “Subscribe for long term” rating.

For all IPO report, click here