IPO Details
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About Rubicon Research Limited IPO
Rubicon Research Limited IPO is an IPO of ₹1,085 crores. It consists of an offer for sale of ₹585 crores and a fresh issue of ₹500 crores. The shares will be allotted on a date TBA. The credit of shares to the demat account will take place on a date TBA and the initiation of refunds will take place on a date TBA.
Objective of Rubicon Research Limited IPO
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Prepayment or scheduled repayment of all or a portion of certain outstanding borrowings taken by the company (estimated amount: 310 crores).
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To fund inorganic growth through unidentified acquisitions and other strategic initiatives along with general corporate purposes.
Rubicon Research Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band (₹) | TBA |
Existing Shares to be Sold | ₹585 crores |
Fresh Issue | ₹500 crores |
EPS (₹) | 5.98 (FY 24) |
Rubicon Research Ltd IPO Share offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIB Shares Offered | Not less than 75% of the Net Issue |
Retail Shares Offered | Not more than 10% of the Net Issue |
NIBs Shares Offered | Not more than 15% of the Net Issue |
Industry Outlook
As India strengthens its position in the global manufacturing landscape, the pharmaceutical industry holds significant potential. By serving both domestic and export markets, pharmaceutical companies can make the most of India's momentum as a prominent manufacturing destination.
According to market forecasts, the global pharmaceutical market is projected to grow at a CAGR of 6.6% from 2023 to 2028F, measurably higher than the historical average growth rate of 5.9% observed between 2018 and 2023.
According to F&S, Indian pharmaceutical companies possess several advantages over their US counterparts, notably lower manufacturing costs, robust research and development capabilities. These factors enable them to maintain profitability within the fiercely competitive US generics market.
Company Information
Rubicon Research Limited is a pharmaceutical formulation company with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets, particularly in the United States.
Based on the peer set (of six listed Indian companies assessed by F&S, and the company), they are the only Indian pharmaceutical player with a complete focus on regulated markets. (Source: F&S Report)
Rubicon Research Ltd Strengths
The company is the fastest-growing Indian pharmaceutical company amongst its peers, and the only Indian company focused completely on the US market.
According to F&S, they are the only Indian pharmaceutical player focusing completely on regulated markets, among six listed Indian companies assessed by F&S. Moreover, between fiscals 2022 and 2024, their revenue from operations grew at a CAGR of 62.5%, which according to the F&S Report, was five times higher than the average of its peers, making Rubicon Research Limited the fastest-growing Indian company, among the assessed companies. According to F&S, in Fiscal 2024, among their 55 commercialized products in the US, they held a market share by volume of more than 25% for seven products in the US market.
Its data-driven product selection framework has allowed it to build a product portfolio with a combination of new and specialty products, allowing it to withstand pricing pressures.
The company’s commercialisation rate of 79.71% of approvals received up to March 31, 2024, is an outcome of their product selection framework that helps them identify future, commercially viable opportunities early on. Their focused approach towards product development has resulted in gross margins of 66.25% and 69.01% in fiscals 2024 and 2023, respectively. According to F&S, Rubicon Research Limited ranks 9th among companies by the total number of specialty product approvals received in the US from 2018 to 2023, with 8 approvals received during this period.
Rubicon Research Limited’s R&D capabilities and continuing investment allow them to pursue complex products that offer strong revenue opportunities.
As of March 31, 2024, they had 143 scientists as part of their R&D teams based in India and Canada, who are focused on formulations development and commercialisation. Their R&D facility in Thane, Maharashtra, India covers an area of 38,421.72 square feet and houses three laboratories for general, sterile, and potent compounds. Their R&D facility in Ontario, Canada covers an area of 13,609.69 square feet, focusing on development programs with in-house analytical and characterization capabilities for nasal and inhalation products. These facilities allow them to carry out product innovation and development activities in-house without material dependence on third parties.
Robust sales and distribution capabilities in the US.
AdvaGen Pharma is licensed to sell products in 43 states in the US, and its in-house order-to-cash management systems enable them to monitor customer orders and review collections, rebate and chargeback claims by customers, wholesalers, and group purchasing organizations in real time. As on March 31, 2024, they marketed over 250 SKUs to 101 customers, including three major wholesalers who, according to F&S account for more than 90% of wholesale drug distribution in the US, as well as group purchasing organisations (GPOs), national pharmacy chains, regional pharmacy chains and managed care organisations.
Risks of Rubicon Research Limited IPO
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As on March 31, 2024, the company derived ₹831.714 crores and 97.40% of their revenue from operations from the United States. This indicates that any adverse developments in the United States could hurt their business and results of operations.
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The company is involved in certain legal proceedings. Any adverse decision in such proceedings may render them liable to liabilities/penalties and may adversely affect their business, financial condition, results of operations, and cash flows.
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They have a history of net losses, negative earnings per share (“EPS”) and return on capital employed. They need to generate and sustain increased revenues while managing their expenses to achieve profitability, and their inability to achieve these goals may have an adverse effect on our business, results of operations, cash flows, and financial condition.
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It is dependent on third parties for the supply of raw materials and manufacture of certain products, and such third parties could fail to meet their obligations which may have a material adverse effect on the business, results of operations, financial condition, and cash flows.
All Financial Information about Rubicon Research Ltd
Particulars (in Rs. Crores)
Particulars (in Rs. Crores)
Comparison with peers
| Parameter | Rubicon Research Limited | Sun Pharmaceutical Industries Limited | Aurobindo Pharma Limited |
|---|---|---|---|
Revenue from Operations for Fiscal 2024 (₹ in crores) | 853.889 | 48496.850 | 28704.5 |
P/E | - | 42.95 | 25.60 |
EPS (Basic) | 5.98 | 39.90 | 54.16 |
Return on Net Worth (%) | 27.11 | 16.01 | 11.18 |
NAV per share | 2.531 | 26.53 | 50.932 |
Anchor Investor Information
The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date.
IPO Registrar and Book Running Lead Managers
Book running lead managers: Axis Capital Limited IIFL Securities Limited JM Financial Limited SBI Capital Markets Limited
Registrar for the IPO is Link Intime India Private Limited
Business Model
The company earns its revenue through the following sources:
- Research and development of specialty products and drug-device combination products targeting regulated markets, particularly the United States.
- Sale of approved and commercialised pharmaceutical products.
Company Growth Trajectory
According to F&S, between fiscals 2022 and 2024, Rubicon Research Limited was the fastest-growing Indian pharmaceuticals formulations company with a CAGR for total revenue of 62.5% which was five times higher than the average (of 11 companies, including us) assessed by F&S. According to F&S, in fiscal 2024, they ranked among the top 10 Indian companies in terms of total Abbreviated New Drug Application (ANDA) approvals.
Company Market Position
According to F&S, in fiscal 2024, among their 55 commercialised products in the US, the company held a market share of more than 25% by volume for seven products. Furthermore, according to F&S, none of their manufacturing facilities have not received an Official Action Indicated (“OAI”) status by the US FDA since 2013. According to F&S, in Fiscal 2024, they ranked among the top 10 Indian companies in terms of total ANDA approvals.
Rubicon Research Limited Company Profit & Loss
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Total Income (₹ crores) | 330.417 | 418.999 | 872.386 |
Profit Before Tax (₹ crores) | (66.112) | (11.049) | 102.857 |
Net Profit (₹ crores) | 91.012 | (16.888) | (67.118) |
EBITDA (₹ crores) | (22.382) | 43.972 | 173.090 |
EPS (₹) | (4.41) | (1.11) | 5.98 |
Rubicon Research Limited Cash Flow Statement
| Parameter | FY22 | FY23 | FY24 |
|---|---|---|---|
Profit before tax (₹ crores) | (66.112) | (11.049) | 102.857 |
Net Cash from Operating Activities (₹ crores) | (62.634) | (74.749) | 21.009 |
Net Cash from Investing Activities (₹ crores) | (54.920) | (33.821) | (68.513) |
Net Cash from Financing Activities (₹ crores) | 63.051 | 122.814 | 43.553 |
Cash and Cash Equivalents (₹ crores) | 38.671 | 54.427 | 50.605 |
How To Check Allotment Status of Rubicon Research Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Limited. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Rubicon Research Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Link Intime India Private Limited
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Rubicon Research Limited from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
How to Apply for Rubicon Research Ltd IPO?
To apply for Rubicon Research Ltd IPO:
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Rubicon Research Ltd IPO FAQs
What is Rubicon Research Ltd IPO?
The Rubicon Research Limited IPO has an issue size of ₹1,085 crores
The IPO opens for subscription on TBA and closes on TBA.
Who is the Registrar for Rubicon Research Ltd IPO?
Link Intime India Private Limited is the registrar for this IPO.
Where can I read more about Rubicon Research Ltd business?
You may read more about Rubicon Research Ltd and its IPO from the company’s red herring prospectus (RHP) here
Upcoming IPOs
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