Rubicon Research IPO receives 84% subscription on day 2; GMP soars

New Delhi: Pharmaceutical company Rubicon Research's initial public offering received 84 per cent subscription so far on the second day of bidding on Friday.

Rubicon Research IPO Subscription on Day 2

The company's IPO received bids for 1,37,76,990 shares compared to 1,64,55,670 shares on offer, as per the data available on the NSE till 12:12 pm.

Retail individual investors (RIIs) quota was subscribed 2.48 times, and the category for non-institutional investors received 90 per cent subscription. The quota meant for qualified institutional buyers (QIBs) attracted 26 per cent bidding.

Rubicon Research IPO GMP

The Rubicon Research IPO had a grey market premium (GMP) of Rs 111, or 22.89%, based on the maximum issue price of Rs 485, according to investorgain.com.

If the current grey market trends continue, the shares may list around Rs 596 each.

It is important to note that the grey market premium is an indicator, not a guarantee.

Rubicon Research IPO Structure

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

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 per cent.

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

Rubicon Research IPO Objective

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 per cent 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.

About Rubicon Research

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.

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