Rubicon Research IPO: Pharma’s Hot Ticket Set For A Strong Debut
Rubicon Research IPO: Pharma’s Hot Ticket Set For A Strong Debut
Rubicon Research is getting a lot of attention because it’s one of the most talked-about IPOs in the pharmaceutical industry this season.
Major investors like Goldman Sachs putting in over ₹600 crore before the opening has given the company a lot of investor confidence.
There has already been a lot of interest in the IPO. Day 1 subscriptions were 51%, and the grey market premium is going up.
Rubicon stands out among India’s export-driven pharmaceutical companies because it has a strong presence in the US and is growing quickly.
Key Takeaways
- Rubicon Research is targeting the US generics and specialty drug market, contributing over 99% of its revenue.
- The IPO size stands at ₹1,377.50 crore, including a ₹500 crore fresh issue and ₹877.50 crore offer for sale.
- The company’s revenue grew at a 75.89% CAGR between FY23 and FY25, far ahead of industry peers.
- Promoters’ stake will reduce from 78% to 62% after the IPO.
- The grey market premium (GMP) is trending at ₹98, indicating a possible 20% listing gain.
Overview of the Company
Rubicon Research was started in 1999 and focusses on speciality pharmaceutical products and advanced drug-device combinations. The US is where the company makes most of its money. It has 72 active ANDAs, 9 NDAs, and 1 OTC approval from the USFDA.
It has two research and development centres, one in India and one in Canada, both of which have been checked by global regulators. The company has three factories in India that are approved by the USFDA, Health Canada, and WHO-GMP.
In June, Rubicon bought Alkem Laboratories’ Pithampur facility for ₹149 crore to make more products.
Its sales grew seven times faster than those of its competitors, thanks to an 86.4% success rate for new products and a 25%+ share of nine major US drugs.
Strong product execution and regular approvals from health authorities around the world are helping the company grow.
Structure and distribution of the IPO
The IPO is worth ₹1,377.50 crore. General Atlantic Singapore RR Pte Ltd is selling 1.81 crore shares for ₹877.50 crore and issuing 1.03 crore new shares for ₹500 crore.
The money will be used to pay off ₹310 crore in debt and help with acquisitions. After the listing, the promoter’s share will go down to 62%, and General Atlantic’s share will go down to 35.8%.
Allocation:
- QIBs: 75%
- NIIs: 15%
- Retail Investors: 10%
- Employees: Separate quota
Price band: ₹461–₹485 per share
Minimum lot size: 30 shares (₹13,830–₹14,550 per lot)
| Event | Date |
|---|---|
| Anchor Bidding | October 8, 2025 |
| IPO Open | October 9, 2025 |
| IPO Close | October 13, 2025 |
| Allotment Finalized | October 14, 2025 |
| Refunds/Shares Credited | October 15, 2025 |
| Listing (BSE/NSE) | October 16, 2025 |
Financial Snapshot
| Metric | FY23 | FY24 | FY25 | Q1 FY26 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 419.1 | 872.4 | 1,296.2 | 357.0 |
| EBITDA (₹ Cr) | 62.5 | 155.2 | 268.9 | 79.5 |
| PAT (₹ Cr) | (16.9) | 91.0 | 134.4 | 43.3 |
| EPS (₹) | (1.09) | 5.85 | 8.65 | 2.79 |
| ROE (%) | (6.2) | 27.1 | 29.0 | – |
| Debt-Equity | 1.45 | 0.92 | 0.73 | – |
In three years, sales tripled, and profits became positive in FY24. Sales went up 49% and profits went up 48% year over year in the first quarter of FY26. About 93–99% of sales come from the US, mostly from the CNS, CVS, and pain relief markets.
The P/E ratio at the higher end of the price range is around 60 times FY25 earnings, which is higher than the average of 35 to 45 times. But investors should be hopeful because Rubicon has a 6.8% ROCE and a history of high growth.
What the Market and Analysts Think
The grey market premium rose to ₹98, which could mean a listing price of ₹583, which is about 20% higher than the issue price. Rubicon’s GMP rise stands out when compared to other IPOs like Canara Robeco or LG Electronics.
Analysts are still positive. Arihant Capital says to subscribe because the company has a strong focus on the US and an 80% CAGR outlook. SMIFS talks about its 66 approved US products and its speciality strength. SBI Securities says that debt is going down quickly and margins are strong. HDFC Securities says that Rubicon is the Indian pharmaceutical company that is growing the fastest.
The mood on social media backs this up, with #RubiconIPO trending and more than 75% of investor posts being positive.
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