The Business Profile of the Rubicon Research Limited

Rubicon Research Limited has been fastest growing Indian pharmaceuticals Formulations Company that focuses on innovation and research, with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets, particularly the United States. In Fiscal 2024, among its 55 commercialized products, the company held a market share of more than 25% by volume for seven products.

The company's Commercialized Products portfolio primarily consists of products in the analgesics/pain management therapy area.  As of February 2024, there are an estimated 129 million individuals in the United States affected by at least one major chronic disease. Chronic therapies are long-term treatments designed to manage ongoing health conditions, often requiring continuous medication over extended periods of time.

The company has two US FDA inspected R&D facilities and two manufacturing facilities in India with multiple accreditations.

The Main Objectives to Launch the Rubicon Research Limited IPO

As per the draft red hearing prospects, Rubicon Research Limited issue consists of both fresh issue and offer for sale by the promoter of the company. One of the main objectives of the company is to list on the bourses and also give the option to sell some of the stakes in the company.

The offer for sale (OFS) consists of up to [●] equity shares aggregating up to ₹ 5,850 million. Nothing from those proceeds of OFS will be allotted to company.

Rubicon Research issue has fresh issue aggregating up to ₹ 5,000 million. According to the document, Rs. 3,100 milion will be utilized for repayment of certain borrowings over next two years and rest of the funds will be utilized for strategic acquisitions and General corporate purposes

IPO Details of Rubicon Research Limited:

Rubicon Research Limited IPO Issue Price & Size

The issue price of Rubicon Research Limited hasn’t been released yet. Upon releasing the dates, the investors can bid between these price ranges. The company has an OFS of up to [●] equity shares consisting of Rs. 585 crores and fresh issue of Rs. 500 crores.

Launch Date of Rubicon Research Limited IPO

The IPO of Rubicon Research Company is launching on (Opening Date XXXX), hence the opening date for bidding is (Open Date) and the IPO is closing on (Closing Date). Investors can bid in this IPO between these days during the primary market hours.

Rubicon Research Limited Financial Statements

Rubicon Research Limited Financial Performance

• Revenue from sales has almost doubled in FY24 to Rs. 8723 million from Rs. 4189 million in FY23.
• Companies EBITDA margin has been increasing from -6.77% in FY22 to 19.84% in FY24
• Number of commercialized product in US has almost tripled from past two years from 18 in FY22 to 55 in FY24. Whereas, approved products in US has almost doubled to 69.
• The company has become profitable after consecutive loss for two years. Profit for FY24 was Rs. 91 crores in comparison of loss of Rs. 16.8 crores in FY23.

Rubicon Research Limited Promoters & Shareholding

There are 6 promoters as of date of filing DRHP, the promoters hold 127,947,540 Equity Shares representing 82.87 % of the paid-up equity share capital of company.

Should You Subscribe to Rubicon Research Limited IPO or Not

While investing or subscribing to any IPO, consider the investment rationales related to the company. Hence, here you can find out the strength of the company that will be its growth factors. And also check the risk factors that can affect the growth and operational efficiency of the company.

Competitive Strengths of the Company:

Fastest growing Indian pharmaceutical Co.: Companies revenue grew at a CAGR of 62.5% between FY22 to FY24, making us the fastest-growing Indian company among peers. Despite competition the company has managed to grown its market share in several products. From its commercialized products, the company hold market share of over 25% for seven products in the US market. In Fiscal 2024, we ranked among the top 10 Indian companies in terms of total ANDA approvals.

Continuing Investment and R&D capabilities: As of FY24, the company has 143 scientists focused on formulation development and commercialization. The facilities cover 38,421.72 square feet and have been approved as testing sites for Drug Substance – Lead Test in June 2024. The company has a portfolio of 59 active ANDAs as of March 31, 2024, with 14 approvals received in Fiscal 2024. As of March 31, 2024, the company has 47 Commercialized Products being marketed and sold in the US, including seven specialty products. As of March 31, 2024, the company had 19 new applications under review by the US FDA for ANDA approval.

Robust sales and distribution capabilities: As of FY24, the company marketed over 250 SKUs to 101 customers. The company has a strong marketing, sales, and distribution platform in the US through its subsidiary AdvaGen Pharma. The company has also acquired Validus, which markets branded prescription products and promotes them to healthcare practitioners. AdvaGen Pharma is licensed to sell products in 43 states and has in-house order-to-cash management systems to monitor customer orders and review collections, rebate, and chargeback claims.

Strong track record of compliance: The Company gives great importance to quality and has a strong track record in regulatory inspections of its manufacturing facilities. Their manufacturing facility in Maharashtra has been inspected seven times by the US FDA, with three inspections resulting in a "No Action Indicated" classification and four inspections resulting in a Voluntary Action Indicated classification.

Risk Factors of the Company:

Concentration of Business: As of FY24, the company derives more than 90% of its revenue from United States. Any disruption or discrepancies in operation or rulings of sorts can adversely impact its overall financial and business model.

Concentration of clients: the company derived 65.14%, 62.99% and 92.44% of revenue in previous three years from top five customers. Any loss of business relation among top 5 clients can adversely affect business prospects and financials.

Specialty and complexity in development: Rubicon Research is a specialty pharmaceutical company that focuses on providing innovative, affordable patient-centered products and solutions.  Manufacture of such products is technically complex and highly regulated. Developing such product pre requisite regulatory inspection and any failures or shortcomings at manufacturing facilities may disrupt client relation or attract penalties.

Since it is a research company, funds invested in research projects may or may not yield desired results on time or at all. SO failure to roll out new products and even attract clients can affect business prospects and financials.

History of losses: The Company has a history of incurring losses in previous financial years leading to negative EPS.

Legal proceedings: The company and its director are involved in certain legal proceedings and any adverse decision in any of the proceedings may make the company liable to penalties.

Description in facilities: The Company at the time of filing the DRHP has two R&D facilities and two manufacturing facilities. Any disruption in any of the R&D or manufacturing facility could affect their business and ongoing projects.

RUBICON RESEARCH LIMITED IPO Grey Market Premium

Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable

However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share

According to various online sources, the Grey Market Premium or GMP of the RUBICON RESEARCH LIMITED is trading around Rs XX  in the grey market. It means shares are trading at the upper band issue price of Rs XX with a premium in the grey market and may list around the same price.

How to Apply for RUBICON RESEARCH LIMITED IPO?

To apply in RUBICON RESEARCH LIMITED IPO you need to open demat account to hold your allotted shares and a trading account to sell or buy the shares into the secondary market. And not only applying in the IPO, but while buying or selling the shares in the stock market you also need both these types of accounts. Hence, you can apply here at Moneysukh to open a trading and demat account at the lowest brokerage.

Also Read: Features of Best Demat Account with Lowest Brokerage Charges in India

Steps to Apply for RUBICON RESEARCH LIMITED IPO:

Step 1: When RUBICON RESEARCH LIMITED IPO opens you can bid online.

Step 2: Just go to trade.moneysukh.com and log in with your User ID & password.

Step 3: Now look for the IPO section and click on the RUBICON RESEARCH LIMITED IPO.

Step 4: Here you need to fill in the required details like price, quantity, and so on.

Note: At the time of applying for the IPO, make sure to bid at the cutoff price and then submit your application. 

Step 5: Now make the required payment and then submit your IPO application successfully.

How to Check RUBICON RESEARCH LIMITED IPO Allotment Status?

Checking the allotment status online is very easy if you have the PAN details and IPO application number. But checking the details of the IPO allotment is possible only when the basis of allotment is arrived. In the case of RUBICON RESEARCH LIMITED IPO, you can also check the allotment status through various online sources.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

And the basis of the allotment is highly dependent on the oversubscription of the IPO. If the IPO is oversubscribed by many folds, then for the investors who applied through the retail category or HNI category, the chances of getting the allotment become very low. Here while applying to such over-demanding IPOs you can follow some tips to improve your chances of getting the allotment in IPO.

Also Read: How to Increase the Chances of IPO Allotment

And when due to oversubscription of IPOs, you don’t get any allotment of shares, then your money will be refunded back into your bank account or fun will be unblocked if you applied through ASBA. However, despite the oversubscribed IPO, if get the allotment then the allocated shares will be transferred into your demat account any time before the date of listing. That you can sell in the secondary market after listing or keep from the long-term investment point of view.