Everstone buys majority stake in Rubicon Research; Kotak PE exits

By Joseph Rai

  • 24 Oct 2016

Private equity firm Everstone Group said it has bought a 70% stake in drug delivery technology company Rubicon Research for $33 million (Rs 220 crore).

The deal comprises primary capital infusion of $20 million into the company and also includes a secondary component involving exit of existing investor Kotak Private Equity and a private investor, Everstone said in a statement.

Kotak Private Equity had invested $4.62 million in Rubicon in 2007 through its fund Kotak India Venture Fund I, according to News Corp VCCEdge, the data and research platform of News Corp VCCircle.


Sameer Sain, co-founder and managing partner of Everstone Group said Rubibcon provides cutting-edge solutions to the healthcare and pharmaceuticals industry and the investment will help in enhancing the company's capabilities.

Rubicon, founded in 2000, is an outsourcing partner for global pharmaceutical firms and provides solutions for bioavailability enhancement, gastric retention, taste masking, and customising the release profiles of drugs. The company also offers lifecycle management services for pharmaceutical products.

The Mumbai-based firm reported a net profit of Rs 2.66 crore on net sales of Rs 39.21 crore in FY2014-15, according to VCCEdge based on the company's ROC filings. It had clocked a net profit of Rs 4.49 crore on net sales of Rs 41.58 crore in the previous fiscal.


"...with their deep managerial and operational expertise, capital infusion and global connectivity, we will be able to significantly accelerate our growth,” said Pratibha Pilgaonkar, founder and CEO, Rubicon.

Everstone's Deep Mishra, who focuses on consumer and pharmaceutical investments, will be joining the board of directors of Rubicon.

This is the fourth investment from Everstone’s latest PE fund, Everstone Capital Partners III, the statement said.


The private equity firm had announced the final close of its third sector-agnostic but consumer theme fund at $730 million in September last year.

The recent investment from Everstone's third fund involved an acquisition of the US-based customer relationship management (CRM) solutions provider C3 (CustomerContactChannels).

In another deal in India's pharmaceuticals space last week, Eywa Pharma Pte Ltd raised $30 million (Rs 200 crore) from investors including private equity firms Eight Roads Ventures India and US-based F-Prime Capital Partners.


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