Rubicon Research IPO: Rs 1,377.50 Crore Offering with 16% Grey Market Premium
Rubicon Research Ltd., a pharmaceutical formulation company, is launching its IPO on October 9, 2023, aiming to raise Rs 1,377.50 crore. The IPO consists of a fresh issue of Rs 500 crore and an offer for sale of Rs 877.50 crore. The price band is set at Rs 461-485 per share, with a lot size of 30 shares. The grey market shows a premium of Rs 80, indicating strong investor interest. The company's financials show significant growth, with a 47.60% increase in Profit After Tax to Rs 134.36 crore and a 48.58% rise in Total Income to Rs 1,296.22 crore. Funds will be used for debt repayment and inorganic growth initiatives. The IPO will be listed on BSE and NSE on October 16, 2023.
*this image is generated using AI for illustrative purposes only.
Rubicon Research Ltd., a pharmaceutical formulation company, is set to launch its Initial Public Offering (IPO) on October 9, 2023. The IPO aims to raise Rs 1,377.50 crore and has generated significant interest in the grey market.
IPO Details
| Particular | Details |
|---|---|
| Issue Type | Book Built Issue IPO |
| Issue Size | Rs 1,377.50 Crore |
| Fresh Issue | Rs 500.00 Crore |
| Offer for Sale | Rs 877.50 Crore |
| Price Band | Rs 461 - Rs 485 per share |
| Lot Size | 30 shares |
| Minimum Investment (Retail) | Rs 14,550 |
| Subscription Period | October 9 - October 13, 2023 |
| Listing Date | October 16, 2023 |
| Listing Exchanges | BSE and NSE |
Grey Market Premium
The grey market is showing a premium of Rs 80 for Rubicon Research shares, indicating strong investor interest:
| Particular | Value |
|---|---|
| Grey Market Premium | Rs 80 |
| Potential Listing Price | Rs 565 |
| Estimated Premium | 16.49% |
Financial Performance
Rubicon Research has demonstrated strong financial growth:
| Metric | Value | YoY Growth |
|---|---|---|
| Profit After Tax | Rs 134.36 Crore | 47.60% ↑ |
| Total Income | Rs 1,296.22 Crore | 48.58% ↑ |
Utilization of Funds
The company plans to use the proceeds from the fresh issue for:
- Debt repayment
- Funding inorganic growth initiatives
Market Analysis
The pharmaceutical formulation sector in India has been witnessing significant growth, driven by increasing healthcare needs and government initiatives. Rubicon Research's IPO comes at a time when investors are showing keen interest in the healthcare and pharmaceutical sectors.
The strong grey market premium suggests positive sentiment among investors, possibly due to the company's robust financial performance and growth prospects in the pharmaceutical formulation space.
Investor Considerations
While the grey market premium and financial growth are positive indicators, investors should consider:
- The competitive landscape in the pharmaceutical sector
- Regulatory risks associated with the industry
- The company's future growth strategy and market positioning
As always, potential investors are advised to carefully read the Red Herring Prospectus and consult financial advisors before making investment decisions.
The Rubicon Research IPO presents an opportunity for investors to participate in the growth of India's pharmaceutical sector. With its strong financial performance and the current market sentiment, it will be interesting to see how the IPO performs upon listing.
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