Rubicon Research IPO Achieves Full Subscription on Second Day of Bidding

Rubicon Research's initial public offering (IPO) was fully subscribed by the second day of its share sale. The IPO, valued at Rs 1,377.5 crore, received bids for 3,89,23,560 shares compared to the 1,64,55,670 shares available, according to NSE data. Retail Individual Investors showed significant interest with a 3.94 times subscription rate.

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The IPO consists of a fresh issue of equity shares worth Rs 500 crore and an Offer For Sale (OFS) of Rs 877.5 crore by General Atlantic Singapore RR Pte Ltd. After the IPO, General Atlantic's stake is expected to decrease to over 35 per cent. The price range for the shares is set between Rs 461 and Rs 485 each.

Subscription Details and Investor Participation

Qualified Institutional Buyers subscribed to the IPO at 2.11 times their allotted portion, while Non-Institutional Investors subscribed at 1.82 times. On the first day of bidding, the IPO had already achieved a 51 per cent subscription rate. The offering is scheduled to close on October 13.

On Wednesday, Rubicon Research announced it had raised Rs 619 crore from anchor investors. Kotak Mutual Fund and Motilal Mutual Fund together invested approximately Rs 169 crore in the company. General Atlantic transferred 34.86 lakh equity shares at Rs 484.47 each as part of this transaction.

Company Background and Strategic Plans

Rubicon Research focuses on pharmaceutical formulations with a strong emphasis on R&D and innovation. Its portfolio includes speciality products and drug-device combinations aimed at regulated markets like the US. The company has been expanding its manufacturing capabilities.

In June, Rubicon acquired Alkem Laboratories' formulations facility in Pithampur, Madhya Pradesh, for Rs 149 crore in cash. It operates two US FDA-inspected R&D facilities in India and Canada and two manufacturing plants in India accredited by various regulatory bodies.

Use of IPO Proceeds

The proceeds from the fresh issue will be used primarily for debt repayment, with Rs 310 crore allocated for this purpose. Additionally, funds will support inorganic growth through acquisitions, strategic initiatives, and general corporate purposes.

Besides General Atlantic, other promoters include Pratibha Pilgaonkar, Sudhir D Pilgaonkar, Parag S Sancheti, Surabhi P Sancheti, and Sumant S Pilgaonkar. Rubicon Research continues to focus on expanding its reach in regulated markets while enhancing its product offerings.

With inputs from PTI