Everstone to sell entire stake in Rubicon Research for Rs 1,000 cr

Private equity player Everstone will sell its 70 per cent stake in Rubicon Research for around Rs 1,000 crore, which will fetch more than four times return on the initial investment.

In 2016, Everstone Group acquired 70 per cent shareholding in Rubicon for about Rs 220 crore.

"Everstone Group's Singapore fund will sell its entire stake in Rubicon Research to a global private equity player, generating 4.5x multiple and a 92 per cent IRR (Internal Rate of Return) in a span of three years.

"This would be one of the best returns generated in the pharmaceutical industry," Everstone said in a release on Monday.

On the basis of the initial investment, the stake will be sold for around Rs 1,000 crore.

Rubicon is into research, development and manufacturing of branded and specialty generic products as well as OTC (Over The Counter) products.

"This is a great example of how a strong relationship and true team work between internal and external stakeholders can produce exceptional outcomes," Everstone Group Co-Founder and CEO Sameer Sain said.