Rubicon Research Ltd, a pharmaceutical formulation company, has submitted draft papers to the capital markets regulator SEBI to raise ₹1,085 crore through an initial public offering (IPO).
According to the Draft Red Herring Prospectus (DRHP) filed on Wednesday, the IPO will include a fresh issue of equity shares worth ₹500 crore and an Offer For Sale (OFS) of shares valued at ₹585 crore by the promoter, General Atlantic Singapore RR Pte Limited.
Currently, General Atlantic holds over a 57% stake in Rubicon Research.
The company plans to use ₹310 crore of the proceeds from the fresh issue to repay debt. Additionally, funds will be allocated for inorganic growth through unspecified acquisitions, other strategic initiatives, and general corporate purposes.
Rubicon Research specializes in pharmaceutical formulations and emphasizes innovation through dedicated research and development. The company boasts a growing portfolio of specialty products and drug-device combination products aimed at regulated markets, particularly the United States.
The firm operates two USFDA-inspected research and development (R&D) facilities—one in India and one in Canada—and two manufacturing facilities in India, accredited by several regulatory agencies including the USFDA, the Food and Drugs Administration of Maharashtra (WHO-GMP accreditation), and Health Canada.
Rubicon is one of the fastest-growing Indian pharmaceutical companies in the US market. As of March 31, 2024, the company’s revenue was ₹832 crore, with the US contributing 97.40% of this total. Rubicon has an EBITDA margin of 20%.
According to F&S, in Fiscal 2024, Rubicon ranked among the top 10 Indian companies for total Abbreviated New Drug Application (ANDA) approvals. The company received 14 ANDA approvals from the US FDA in FY24, 12 approvals in FY23, and nine approvals in FY22.
As of March 31, 2024, Rubicon Research had a portfolio of 69 products approved by the USFDA, 19 new drugs awaiting USFDA approval, and 46 products in various stages of development.
Axis Capital, IIFL Securities, and SBI Capital Markets are the book-running lead managers for the issue.
