A pharmaceutical formulation business called Rubicon Research Ltd. has submitted draft documents to the Securities and Exchange Board of India (SEBI) in an effort to raise Rs. 1,085 crore via an initial public offering (IPO). The IPO consists of an offer for sale (OFS) of shares valued at Rs 585 crore by the promoter, General Atlantic Singapore RR Pte Limited, and a new issue of equity shares valued at Rs 500 crore. This data was disclosed in the Red Herring Prospectus (DRHP) draft that was turned in on Wednesday.
Currently, General Atlantic owns more than 57% of Rubicon Research. The company intends to pay off debt with the approximately Rs 310 crore in revenues from the new offering. The money will also be used for general business objectives, including acquisitions, and other strategic endeavors in order to promote inorganic growth.
Renowned for its innovative methodology, which places a strong emphasis on research and development (R&D), is Rubicon Research. The company’s portfolio of specialty medicines and drug-device combinations is expanding, with an emphasis on regulated markets, mainly the US. Rubicon Research runs two USFDA-inspected facilities, one in Canada and one in India, to support its research and development initiatives. Additionally, it has two production facilities in India that are accredited by the US Food and Drug Administration, the Food and Drug Administration of Maharashtra (with a WHO-GMP accreditation), and Health Canada.
69 USFDA-approved medications are included in Rubicon Research’s portfolio as of March 31, 2024. In addition, the company has 46 items in various phases of research and 19 novel pharmaceuticals pending approval from the USFDA. This broad and expanding portfolio highlights the company’s notable position in regulated sectors as well as its dedication to innovation.
As the book-running lead managers, Axis Capital, IIFL Securities, and SBI Capital Markets are overseeing the IPO. Rubicon Research views this intention to go public as a calculated attempt to improve its financial standing, lower its debt, and accelerate its growth through targeted projects and acquisitions.
With the additional funds, Rubicon Research will be able to pay off its current debt and look for new growth prospects that might strengthen its position in the market. The company’s emphasis on both organic and inorganic expansion indicates that it is actively seeking to increase its capabilities and market reach.
Rubicon Research is well-positioned to take advantage of the prospects in the pharmaceutical business, particularly in the highly regulated US market, because to its dedication to innovation, strong R&D capabilities, and stable portfolio of approved and pipeline drugs. An important next stage in its growth trajectory is the impending IPO, which will provide the money it needs to support its strategic objectives and increase shareholder value.
SOURCE:
ECONOMIC TIMES
