Rubicon Research IPO Day 2: Track GMP, subscription status, brokerages’ insights, and key highlights – News Air Insight

Rubicon Research’s Rs 1,377 crore IPO, which opened for subscription on October 9, has now entered its second day. The issue was 51% subscribed, with bids for 84.62 lakh shares against the 1.64 crore shares on offer by the end of Day 1.

Market observers report that Rubicon Research is trading at a grey market premium (GMP) of Rs 85, approximately 17.5% above the upper price band, indicating strong expectations for the listing, driven by investor interest in the healthcare and pharmaceutical sectors.

Rubicon Research, a pharma manufacturer specialising in speciality and generic drugs, has set its price band between Rs 461 and Rs 485 per share, valuing the company at around Rs 7,990 crore. The IPO consists of a fresh issue of Rs 500 crore and an offer for sale (OFS) worth Rs 877 crore.

Rubicon Research IPO Subscription Status

By the close of Day 1 bidding, the Rubicon Research IPO was subscribed 51% overall, indicating moderate investor interest on the first day.

Among different investor categories, Retail Individual Investors (RIIs) showed strong enthusiasm, subscribing 1.36 times the 29.84 lakh shares allocated to them, reflecting healthy demand from individual investors.

Non-Institutional Investors (NIIs), which include high-net-worth individuals and others, subscribed to 47% of their reserved quota of 44.76 lakh shares, suggesting a more cautious approach from this group.

Qualified Institutional Buyers (QIBs), typically large institutional investors, bid for 26% of their allocation of 89.52 lakh shares, indicating relatively lower participation from institutions on the first day.

Rubicon Research GMP

According to market experts, Rubicon Research is trading at a grey market premium (GMP) of Rs 85, around 17.5% higher than the IPO’s upper price band. This indicates robust investor confidence and optimistic expectations for a strong listing, fueled mainly by interest in the healthcare and pharmaceutical sectors.

Brokerage Review

Arihant Capital has assigned a “Subscribe” rating to the Rubicon Research IPO, emphasising the company’s strong growth prospects and well-diversified product portfolio.

According to the brokerage’s IPO report, “Rubicon Research is a fully integrated pharmaceutical product development company with a notable presence in the US generics and speciality markets. Its leadership in the US generics segment, along with its strategic expansion into specialty pharmaceuticals through the acquisition of Validus, positions the company for sustainable long-term growth.”

The IPO is considered fairly valued, trading at a price-to-earnings (P/E) ratio of around 60 times estimated FY25 earnings, while providing scalability and clear visibility in international markets.

Company Overview

Rubicon Research operates across the US, Canada, and India, offering differentiated formulations in both generics and speciality drugs. As of June 2025, the company boasts 72 US FDA-approved products, with 17 pending approval and another 63 in the pipeline. It operates three manufacturing facilities in India and maintains two R&D centres located in India and Canada.

The acquisition of Validus Pharmaceuticals in the US represents a strategic move into branded speciality drugs, granting Rubicon direct access to prescribers across 44 states.

Financials

Rubicon has demonstrated a significant financial turnaround. Its revenue surged from Rs 4,190 crore in FY23 to Rs 12,962 crore in FY25, while net profit climbed to Rs 1,344 crore, recovering from a Rs 169 crore loss two years earlier. EBITDA margins also improved substantially, rising to 21% in FY25 from 10% in FY23, reflecting stronger operational efficiency.

Also read: Groww set to launch Rs 7,000 crore IPO in November

Analysts believe the IPO is likely to attract both institutional and retail investors interested in a rapidly growing mid-sized pharmaceutical exporter. With its improving profitability, expanding global presence, and strategic entry into the US market, Rubicon is well-positioned for sustained long-term value creation.

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

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