Two mainboard IPOs are open for subscription today, October 9 – Canara Robeco AMC and Rubicon Research. Both offer distinct investment stories, but which one is likely to draw more attention from investors?
Let’s take a look at both these issue and understand what they offer-
Canara Robeco AMC Vs Rubicon Research IPO: Dates and subscription window
Canara Robeco AMC opened for subscription today, October 9 and closes on October 13. The IPO is entirely an Offer For Sale (OFS) of 4.98 crore shares by its promoters, Canara Bank and ORIX Corporation Europe. It is a book build issue of Rs 1,326.13 crores.
Similarly, Rubicon Research also opened on today, October 9 and closes on October 13,. The issue includes a new equity issuance of Rs 500 crore along with an OFS of Rs 877.5 crore from promoter General Atlantic Singapore RR Pte Ltd. This is a book build issue of Rs 1,377.50 crores.
Both IPOs are expected to finalise allotments on October 14, with listing on BSE and NSE on October 16.
Canara Robeco AMC Vs Rubicon Research IPO: Price band and lot size
Canara Robeco AMC’s price band is set at Rs 253–266, with a retail lot of 56 shares, making the minimum investment around Rs 14,896.
On the other side Rubicon Research price band is Rs 461–485, with a retail lot of 30 shares, requiring a minimum investment of Rs 14,550.
Canara Robeco AMC Vs Rubicon Research IPO: Anchor investor participation
Now coming to the anchor investors round, prior to the opening of the issue Canara Robeco AMC raised Rs 398 crore from anchor investors. This includes SBI MF, ICICI Prudential MF, Kotak MF, Franklin India MF, and Bajaj Allianz Life Insurance.
Looking at Rubicon Research, the company has secured Rs 619.09 crore from 32 anchor investors, ahead of its IPO opening.
Canara Robeco AMC Vs Rubicon Research IPO: Grey Market Premium (GMP)
In the unlisted market, the shares of Canara Robeco AMC are commanding a GMP of around Rs 35. This translates to a potential listing gain of 13% against the issue upper price band.
Rubicon Research shares are trading with a GMP of Rs 90. This suggests a potential upside of 20% over the IPO price at the upper band.
However, it is important to note that GMP is not the official indicator and fluctuates based on market sentiment
Canara Robeco AMC Vs Rubicon Research IPO: Use of proceeds
Being a pure OFS, Canara Robeco AMC will not receive any proceeds. Funds will go entirely to the promoter-selling shareholders.
Now talking of Rubicon Research IPO proceeds, around Rs 310 crore will be used for debt repayment and the remaining funds placed for acquisitions, strategic growth, and corporate purposes.
Canara Robeco AMC Vs Rubicon Research IPO: Allotment and listing timeline
Both these mainboard IPOs are expected to finalise allotments on October 14, with refunds and share credit on October 15. Thereafter, the shares are scheduled to list on both NSE, BSE on October 16. Retail and institutional investors will receive shares simultaneously post-allotment.
Canara Robeco AMC Vs Rubicon Research IPO: About the company
Canara Robeco AMC manages mutual funds and offers investment advisory services, primarily in Indian equities. Moreover, it is the country’s second-oldest asset manager, with Canara Bank holding 51% and ORIX Corporation Europe the remaining 49%.
Rubicon Research operates in pharmaceutical formulations. It focuses on research-driven specialty products and drug-device combination products for regulated markets, particularly the US. Furthermore, the company has R&D facilities in India and Canada, along with two manufacturing plants in India that are USFDA-compliant.