The Rs 1,377 crore IPO, which closed for subscription on October 13, attracted stellar demand across investor categories, being subscribed to an impressive 109 times.
The Qualified Institutional Buyers (QIBs) portion led the show with 137.09 times the bids, followed by Non-Institutional Investors (NIIs) at 102.7 times, and retail investors at 37.4 times. The strong response places Rubicon among the most heavily subscribed pharma IPOs of 2025.
Analysts attribute the excitement around Rubicon to its robust financial performance, specialized portfolio in the US generics market, and scalable business model. The company, backed by the private equity firm General Atlantic, has established itself as one of India’s fastest-growing pharmaceutical formulation companies, primarily catering to regulated markets.
In FY25, Rubicon’s revenue surged 49% year-on-year to Rs 1,296 crore, while profit after tax rose 48% to Rs 134 crore. Margins also remained strong, with EBITDA at 20.7% and PAT margin at 10.4%, underlining consistent operational efficiency. The company’s return on equity (ROE) stood at 29%, and return on capital employed (ROCE) at 26.5%, reflecting superior capital productivity compared to many domestic peers.
At the issue price, the IPO valued Rubicon at a P/E of around 46x, which analysts believe is justified given its growth trajectory, high compliance standards, and strong US exposure.The firm has a US-centric portfolio, contributing over 95% of total revenue, with 72 active ANDA and NDA approvals and 17 more products awaiting US FDA nods. It also markets over 350 SKUs across 96 clients, including leading wholesalers, GPOs, and pharmacy chains.Beyond the US, Rubicon is expanding into Australia, the UK, and the Middle East, aiming to diversify its global footprint. It operates three manufacturing plants in India and two US FDA-approved R&D centers — one in India and another in Canada — strengthening its formulation and innovation capabilities.
The IPO proceeds from the fresh issue of Rs 500 crore will be used to reduce debt and fund inorganic growth, including potential acquisitions. The company’s debt-to-equity ratio of 0.73 is already comfortable, and analysts expect further deleveraging to improve profitability in FY26.
The post-listing performance will depend on sentiment in the pharma space.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)