Rubicon Research Funding Round Analyzed
Rubicon Research, a pharmaceutical company, has recently received a significant investment of ₹140 crore from funds including 360 ONE and TIMF Holdings. This investment came during a pre-IPO financing round. This demonstrates increasing investor confidence in the company’s future growth.
Key Points
- ₹140 crore investment from 360 ONE & TIMF Holdings.
- General Atlantic sold 2.88 million shares at ₹484.47/share.
- General Atlantic remains largest shareholder with 52.15% stake.
- Company aims to launch IPO later this year (₹1,085 crore).
- Strong financial turnaround: revenue tripled, EBITDA surged.
- Expansion through acquisition: ₹149 crore Alkem facility purchase.
Currently, General Atlantic holds the largest share of the company, owning approximately 52.15% of the total shares. Prior to this investment, they held 83.7 million shares. Following the sale of 2.88 million shares to the other funds, their stake has decreased to 80.8 million shares.
Rubicon Research is preparing for an initial public offering (IPO) later this year, with a total issue size of up to approximately ₹1,085 crore. The IPO is structured with a fresh issue of equity shares worth around ₹500 crore and an offer for sale of up to around ₹585 crore by General Atlantic Singapore RR Pte. Ltd., their primary promoter.
The company’s growth strategy focuses on building a strong pipeline of products for the US market. By financial year 2025 (FY25), Rubicon aims to have 66 commercialized products in the United States. They have secured several Abbreviated New Drug Application (ANDA) approvals, including 12 in FY23, 14 in FY24, and 12 in FY25, with additional approvals secured in Q1 FY26.
Over the past three financial years, Rubicon Research has shown a remarkable turnaround. Operating income has more than tripled, increasing from ₹393.5 crore in FY23 to ₹1,284.27 crore in FY25. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) has also surged sixfold, reaching ₹267.8 crore, indicating improved operational efficiency. Their net results have shifted from a loss of ₹16.8 crore in FY23 to a profit of ₹134.3 crore in FY25.
Rubicon Research has secured approvals for 81 products from the US Food and Drug Administration (USFDA) by June 2025, with 70 already commercialized. They operate two USFDA-inspected R&D facilities in India and Canada, alongside two manufacturing facilities in India accredited by multiple regulatory agencies, including the USFDA and Health Canada.
The funds raised from the IPO will be used for several strategic purposes, including paying down debt, pursuing inorganic growth through acquisitions, funding key strategic initiatives, and covering general corporate expenses. Most recently, they acquired Alkem Laboratories’ formulations manufacturing facility in Pithampur, Madhya Pradesh, for ₹149 crore, expanding their production capacity and market reach.
Investing in Rubicon Research presents an opportunity to capitalize on a company experiencing strong growth and demonstrating improved financial performance.
