Pharmaceutical formulation company Rubicon Research Ltd opened its ₹1,377.5 crore initial public offering (IPO) on Wednesday, with shares priced in a range of ₹461–₹485 apiece. The three-day public issue will close on October 13.
The IPO consists of a fresh issue worth ₹500 crore and an Offer for Sale (OFS) of ₹877.5 crore by its promoter, General Atlantic Singapore RR Pte Ltd.
Following the share sale, General Atlantic’s holding in the Mumbai-based drug maker will fall to just over 35 per cent.
Allotment and structure
As per the offer structure, up to 75 per cent of the issue is reserved for Qualified Institutional Buyers (QIBs), while Non-Institutional Investors (NIIs) can bid for up to 15 per cent.
Retail investors have access to not more than 10 per cent of the offer. Applications can be made in lots of 30 shares each.
The IPO also includes a reservation of shares with a face value of ₹1 each, aggregating up to ₹1.75 crore, for eligible shareholders who will receive a discount of ₹46 per share on the issue price. JM Financial, Axis Capital, IIFL Capital, SBI Capital Markets, and MUFG Intime India Pvt. Ltd. are managing the issue.
Strong anchor book response
Ahead of the opening, Rubicon Research raised ₹619 crore from a clutch of marquee anchor investors. According to a circular filed with the BSE, 32 institutional investors subscribed to over 1.27 crore equity shares at the upper price band of ₹485.
The anchor list includes major domestic and global funds such as Goldman Sachs, HDFC Mutual Fund, Fidelity Funds, ICICI Prudential MF, Kotak Mahindra MF, Amansa Holdings, and Aranda Investments Pte.
Market observers said the robust participation underscored confidence in Rubicon’s growth trajectory and fundamentals.
In a pre-IPO round, Kotak MF and Motilal Oswal MF jointly invested approximately ₹169 crore in the company.
Use of proceeds and promoter stake moves
Rubicon plans to utilise ₹310 crore from the fresh issue proceeds to pare down existing debt. The remainder will be directed toward strategic acquisitions, business expansion, and general corporate purposes.
Meanwhile, General Atlantic, the private equity firm that has backed Rubicon since 2019, has been gradually paring its stake in the company over recent months.
In August, it sold 51.6 lakh shares (3.3 per cent) to Amansa Investments for ₹250 crore, followed by a September transaction transferring 28.89 lakh shares (1.86 per cent) to TIMF Holdings and 360 ONE for about ₹140 crore.
Most recently, General Atlantic offloaded 34.86 lakh shares (2.25 per cent) at ₹484.47 each, amounting to roughly ₹169 crore.
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