Rubicon Research IPO subscribed 48 times on final day
What's the story
Rubicon Research, a pharmaceutical company, has seen its initial public offering (IPO) subscribed 48 times on the third day of bidding today. The company's IPO received bids for over 179.32 crore shares against the 1.64 crore shares on offer, according to data from the National Stock Exchange (NSE). The issue will close today and has a price band of ₹461-485 per share.
Investor participation
Fresh issue of equity shares worth ₹500 crore
The retail individual investors (RIIs) quota was subscribed 26 times, while the non-institutional investors category was subscribed 80.07 times. The Qualified Institutional Buyers (QIBs) quota was subscribed 39.84 times. On Wednesday, Rubicon Research announced it had mobilized ₹619 crore from anchor investors for its IPO. The company's public offering consists of a fresh issue of equity shares worth ₹500 crore and an Offer For Sale (OFS) of ₹877.5 crore by promoter General Atlantic Singapore RR Pte Ltd.
Shareholding reduction
Rubicon Research to use proceeds from fresh issue for debt
After the IPO, General Atlantic's shareholding will reduce to over 35%. The company plans to use the proceeds from the fresh issue for debt repayment and inorganic growth through acquisitions, strategic initiatives, and general corporate purposes. In a public announcement on Wednesday, Rubicon Research said Kotak Mutual Fund and Motilal Mutual Fund have together invested some ₹169 crore in the pharmaceutical firm.
Business expansion
Pharmaceutical formulation company with a strong focus on R&D
Rubicon Research is a pharmaceutical formulation company with a strong focus on R&D and innovation. It has been expanding its manufacturing footprint, acquiring Alkem Laboratories's formulations facility in Pithampur, Madhya Pradesh, for ₹149 crore in an all-cash deal. The company operates two US FDA-inspected R&D facilities (one each in India and Canada) and two manufacturing plants in India accredited by multiple regulatory authorities including USFDA, Maharashtra FDA (WHO-GMP), Health Canada.