Rubicon Research IPO Draws Strong Investor Interest, Nearing Full Subscription on Day 2

The initial public offering (IPO) of Rubicon Research, a prominent pharmaceutical product development and contract development and manufacturing organization (CDMO), is generating considerable buzz in the market. By the close of Day 2, the IPO had already achieved an impressive 76% subscription, indicating robust investor confidence and strong demand for the company's shares.

Retail individual investors (RIIs) have been particularly enthusiastic, subscribing to their allotted portion a remarkable 1.25 times.

This strong showing from the retail segment highlights a positive sentiment surrounding Rubicon Research's growth prospects and business model. Non-institutional investors (NIIs) also demonstrated significant interest, with their reserved portion subscribed to 65%. While Qualified Institutional Buyers (QIBs) are yet to fully participate, their engagement is anticipated to pick up on the final day, often a pattern observed in many IPOs.

The IPO, which commenced on June 18, is set to conclude on June 20, 2024.

The company has fixed the IPO price band at Rs 130 to Rs 140 per equity share. Investors can bid for a minimum of 1000 shares, and in multiples thereof, making the minimum application amount Rs 140,000 for a single lot at the upper end of the price band.

Rubicon Research aims to raise Rs 150.36 crore through this public issue, which consists entirely of a fresh issuance of 1,074,000 equity shares.

The funds generated are expected to fuel the company's expansion plans, enhance its research and development capabilities, and support its strategic growth initiatives in the competitive pharmaceutical landscape. Following its successful listing, Rubicon Research's shares will be traded on the BSE SME platform.

The company specializes in pharmaceutical product development and offers comprehensive CDMO services, focusing on a diverse range of dosage forms including oral solids, liquids, topical, and ophthalmics.

This niche expertise positions Rubicon Research strategically within the growing global pharma market. Hem Securities and Share India Capital Services are acting as the book-running lead managers for the IPO, with Link Intime India Private Ltd serving as the official registrar.

Financially, Rubicon Research has shown promising performance.

For the fiscal year ended March 31, 2023, the company reported a total revenue of Rs 137.6 crore and a net profit of Rs 24.3 crore, showcasing a healthy financial trajectory. Moreover, the grey market premium (GMP) for Rubicon Research shares has been holding steady at Rs 30 as of June 19, indicating an optimistic outlook from the unofficial market.

This suggests a potential listing gain for investors, adding to the allure of the IPO.