Pharmaceutical formulations company Rubicon Research Ltd has secured ₹250 crore in pre-IPO funding from Amansa Investments Ltd, marking a significant milestone as the company prepares for its maiden public offering expected by the end of 2024. The transaction involved General Atlantic Singapore RR Pte Ltd transferring 51.60 lakh equity shares to Amansa Investments at ₹484.47 per share.
Strategic Investment Reshapes IPO Structure
The pre-IPO placement has resulted in a reduction of Rubicon Research's fresh issue size for its upcoming IPO. Originally, the company's proposed IPO consisted of a fresh issue of equity shares worth ₹500 crore alongside an offer-for-sale of shares valued at ₹585 crore. Following the latest fundraise, the size of the fresh issue will be reduced accordingly.
General Atlantic Singapore RR Pte Ltd, one of Rubicon Research's promoters, continues to maintain its majority position despite the share transfer. At the time of filing draft papers in July 2024, General Atlantic held 8.89 crore equity shares, representing a 57.34% stake. Following the pre-IPO deal, it will hold 8.37 crore equity shares, or 54.01% of the company.
Regulatory Infrastructure and Product Portfolio
Rubicon Research operates as a pharmaceutical formulations company driven by innovation through focused research and development, with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets, particularly the United States. The company maintains two US FDA-inspected research and development facilities, one each in India and Canada, and two manufacturing facilities in India with multiple accreditations from regulatory agencies including USFDA, Food and Drugs Administration Maharashtra (WHO-GMP accreditation), and Health Canada.
As of March 31, 2024, the company had built a substantial product portfolio comprising 69 products approved by the USFDA, 19 new drugs awaiting USFDA approval, and 46 products in various stages of development. This regulatory footprint positions the company to serve regulated markets with a focus on specialty formulations.
Strategic Growth Initiatives
The company plans to utilize proceeds from the fresh issue for debt payment, supporting inorganic growth through unidentified acquisitions, strategic initiatives, and general corporate purposes. In June, Rubicon Research completed the acquisition of Alkem Laboratories' formulations manufacturing facility in Pithampur, Madhya Pradesh, in an all-cash deal worth ₹149 crore, demonstrating its commitment to expanding manufacturing capabilities.
The transaction received board approval on August 12 and was conducted in consultation with the book running lead managers of Rubicon Research. Other promoters of the company include Pratibha Pilgaonkar, Sudhir D Pilgaonkar, Parag S Sancheti, Surabhi P Sancheti, and Sumant S Pilgaonkar.
