Rubicon Research Debuts At Nearly 30% Premium After Solid IPO Bidding

Rubicon Research Listing: After receiving an overwhelming response for its initial public offer, Rubicon Research Ltd. listed on the exchanges at nearly 30% premium to its issue price.

Rubicon Research listed on National Stock Exchange at Rs 620, which implied 27.84% premium over its issue price of Rs 485. It listed on BSE at Rs 620.10 apiece, which indicated a premium of 27.86%.

The initial public offering (IPO) of Rubicon Research Ltd. closed with a strong subscription on the last day of bidding on Monday. The mainboard IPO was oversubscribed 103.90 times on the third and final day, with investors bidding for 1,70,96,80,620 shares against the 1,64,55,670 shares on offer.

The IPO opened for subscription on last Thursday, Oct 9. on The share allotment status for the Rubicon Research IPO was finalised on Tuesday, Oct 14.

The Rubicon Research IPO is a book-built issue of Rs 1,377.50 crore, comprising a fresh issue of 1.03 crore shares aggregating Rs 500 crore and an Offer for Sale (OFS) of 1.81 crore shares aggregating Rs 877.50 crore.

The price band for the IPO was set between Rs 461 and Rs 485 per share.

Axis Capital Limited is the book-running lead manager, and MUFG Intime India Private Limited is the registrar for the issue.

Rubicon Research is a pharmaceutical company that manufactures differentiated formulations. It has three manufacturing facilities in India. Its portfolio has 72 active abbreviated new drug application. Specialty products, and drug device combination products are increasing in its portfolio.

Rubicon Research has its manufacturing and research and development units located in Maharashtra mostly.

Rubicon Research will use the proceed from the IPO for prepayment and scheduled repayment of all or a portion of certain outstanding borrowings availed by the company. It will also fund inorganic growth through unidentified acquisitions and other strategic initiatives and geenral corporate purposes.

Post listing, Rubicon Research will also receive the benefits of listing of its equity shares on the stock exchanges, HDFC Securities said. This will enhance the brand name and credibility for the pharmaceutical company.