Rubicon Research Raises Rs 619 Crore From Anchor Investors Ahead Of IPO

Rubicon Research on Wednesday announced that it had collected Rs 619 crore from anchor investors, right before its initial-share-sale opening for public subscription.

The anchor book saw participation from foreign and domestic institutional investors, such as Goldman Sachs, HDFC Mutual Fund, Fidelity Funds, ICICI Prudential MF, Kotak Mahindra MF, Amansa Holdings and Aranda Investments Pte, as per a circular on BSE.

Rubicon Research allotted over 1.27 crore equity shares to 32 funds at Rs 485 per share.

The firm's Rs 1,377.5 crore initial public offering consists of a fresh issue of equity shares worth Rs 500 crore and an offer for sale of Rs 877.5 crore by the promoter, General Atlantic Singapore RR Pte Ltd.

After the IPO, General Atlantic's shareholding is expected to decrease by 35%.

The issue is set to open for subscription on Oct. 9 and close on Oct. 13, and will have a price band of Rs 461-485 per share.

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.

Earlier in the day, Rubicon Research, in a public announcement, stated 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 a price of Rs 484.47 per share, amounting to approximately Rs 169 crore.

In September, General Atlantic sold 28.89 lakh equity shares (1.86% stake) for Rs 140 crore at Rs 484.47 apiece to TIMF Holdings, and 360 ONE, while in August, it transferred 51.60 lakh equity (3.3 per cent stake) to Amansa Investments in the company at same price for Rs 250 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.

Rubicon Research is a pharmaceutical formulations company with a strong focus on research and development and innovation. Its portfolio includes an increasing number of specialty 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 Food And Drugs Administration-inspected research and development 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.

In terms of allocation, 75% of the issue size has been reserved for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.

Rubicon Research is expected to make its stock market debut on Oct. 16.

(With PTI Inputs)