Rubicon Research IPO Day 3: GMP, subscription status, brokerage views, and key highlights – News Air Insight

Rubicon Research’s Rs 1,377 crore IPO has entered its third and final day of bidding. By the end of Day 2, the issue was subscribed 2.37 times, driven largely by robust retail demand, which saw investors bidding nearly four times their allocated quota. Overall, the IPO received bids for 3.89 crore shares against 1.64 crore shares on offer.

According to market observers, Rubicon Research is currently commanding a grey market premium (GMP) of Rs 90, roughly 18.56% above the upper end of its price band. This is a slight increase from the previous GMP of 17.5%, reflecting strong investor sentiment and expectations of a successful listing, particularly given the company’s focus on the high-growth healthcare and pharmaceutical sector.

Rubicon Research is a pharmaceutical company focused on the development of specialty and generic drugs. The IPO price band is set between Rs 461 and Rs 485 per share, valuing the company at approximately Rs 7,990 crore.

The public offering comprises a fresh issue of Rs 500 crore and an offer for sale (OFS) of Rs 877 crore.

Rubicon Research IPO Subscription Status

By the end of Day 2, Rubicon Research’s IPO was subscribed 2.37 times overall, reflecting a moderate level of investor interest at this stage of bidding.

Retail Individual Investors (RIIs) showed strong participation, subscribing 3.94 times the 29.84 lakh shares reserved for them, highlighting solid demand from retail buyers.

Non-Institutional Investors (NIIs), including high-net-worth individuals, subscribed 1.82 times their allotted 44.76 lakh shares, indicating a more measured response from this segment.

Meanwhile, Qualified Institutional Buyers (QIBs), comprising large institutional investors, bid for 2.11 times their allocated 89.52 lakh shares, suggesting relatively restrained participation from institutions on Day 2.

Rubicon Research GMP

Rubicon Research is currently commanding a grey market premium (GMP) of Rs 90, roughly 18.56% above the IPO’s upper price band of Rs 485. This is a slight increase from the previous GMP of 17.5%, reflecting growing investor optimism ahead of the company’s listing.

Brokerage Review

Arihant Capital has given a “Subscribe” rating to the Rubicon Research IPO, citing the company’s strong growth potential and diversified product portfolio.

In its IPO note, the brokerage said: “Rubicon Research is a fully integrated pharmaceutical development company with a solid foothold in the U.S. generics and specialty markets. Its leadership in generics, coupled with strategic growth into specialty pharmaceuticals through the acquisition of Validus, positions it well for long-term, sustainable growth.”

The IPO is viewed as fairly valued, with a price-to-earnings (P/E) multiple of approximately 60x based on estimated FY25 earnings. Arihant believes the company offers strong scalability and clear visibility in global markets.

Company Overview

Rubicon Research has a global footprint spanning the US, Canada, and India, specializing in differentiated formulations across both generic and specialty drug segments. As of June 2025, the company has 72 products approved by the US FDA, with 17 awaiting approval and an additional 63 in development. Its operations include three manufacturing facilities in India and two R&D centers—one each in India and Canada.

The acquisition of Validus Pharmaceuticals in the US marks a strategic entry into the branded specialty drug space, providing Rubicon with direct access to healthcare providers across 44 states.

Financials

Rubicon Research has delivered a strong financial turnaround in recent years. Revenue rose from Rs 4,190 crore in FY23 to Rs 12,962 crore in FY25, while net profit rebounded sharply to Rs 1,344 crore, recovering from a loss of Rs 169 crore just two years earlier. EBITDA margins improved from 10% in FY23 to 21% in FY25, reflecting enhanced operational efficiency.

Analysts expect the IPO to attract both institutional and retail investors, given Rubicon’s rapid growth as a mid-sized pharmaceutical exporter. Its rising profitability, expanding global footprint, and strategic entry into the U.S. market position the company for long-term value creation.

The IPO is set to be listed on both the NSE and BSE, with Axis Capital as lead manager and MUFG Intime India serving as registrar.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)