Table of Contents
Rubrik IPO
Here’s the breakdown of profit and wealth generated for the US and Indian employee based on the given scenario.
Scenario
- 1st Employee has 30,000 RSU shares granted at $0 cost.
- 2nd Employee has 40,000 RSU shares granted at $0 cost and so on as explained in example below.
- IPO price is $38 per share.
- Indian tax bracket is 30% (applied to capital gains).
- USA has 37% tax bracket for income over $523,600 approx and it also have state wise tax rules.
Calculation
- Profit:
- Profit per share = Selling price – Cost price = $38 – $0 = $38
- Total profit for 30,000 shares = $38/share * 30,000 shares = $1,140,000 (1 Million)
- Total profit for 40,000 shares = $38/share * 40,000 shares = $1,520,000 (1.5 Million)
- Pre-tax Wealth:
- Pre-tax wealth represents the total profit before taxes.
- Pre-tax wealth for 30,000 shares = $1,140,000
- Pre-tax wealth for 40,000 shares = $1,520,000
- After-tax Wealth:
- Capital gains tax rate in India = 30% (given)
- Since the shares are held for less than 1 year (assuming they are sold on day 1), these are considered short-term capital gains.
- Short-term capital gains are taxed at the income slab rate, which is 30% in this case.
- After-tax wealth = Pre-tax wealth * (1 – Tax rate)
- After-tax wealth for 30,000 shares = $1,140,000 * (1 – 30%) = $1,140,000 * 0.7 = $798,000 (approx.)
- After-tax wealth for 40,000 shares = $1,520,000 * (1 – 30%) = $1,520,000 * 0.7 = $1,064,000 (approx.)
Summary
| Scenario Shares (RSU) at $0 | Per share Profit ($) | Total Profit Pre-Tax ($) | After-tax Wealth (30%) ($) | Total Profit (83 INR = $1) (INR) | In Crores (INR) |
| 5,000 | $38 | $190,000 | $133,000 | ₹11,039,000 | ₹1.10 |
| 10,000 | $38 | $380,000 | $266,000 | ₹22,078,000 | ₹2.21 |
| 30,000 | $38 | $1,140,000 | $798,000 | ₹66,234,000 | ₹6.62 |
| 40,000 | $38 | $1,520,000 | $1,064,000 | ₹88,312,000 | ₹8.83 |
Important Notes
- This is a simplified calculation and may not account for all factors like brokerage fees or currency conversion charges.
- It’s advisable to consult a tax advisor for specific tax implications based on the employee’s individual situation.
Rubrik IPO Listing Moments on NYSE
Rubrik IPO Breakdown
Rubrik, a cloud data security company backed by Microsoft, made a splashy entrance into the public market on April 25th, 2024. Here’s a closer look at the key details surrounding their initial public offering (IPO):
- Strong Demand and Upsized Offering:
- Initial target range: $29 – $31 per share
- Priced at: $32 per share, exceeding the initial range
- Offering size increased: 23 million shares to 23.5 million shares
- Oversubscribed: Received orders for about 20 times the available shares
- Potential additional offering: Underwriters granted a 30-day option to purchase up to 3.525 million additional shares
- Financial Highlights:
- Funds raised: $752 million
- Market valuation:
- Based on outstanding shares: $5.6 billion (at IPO price)
- Fully diluted valuation: over $6.6 billion (including stock options and restricted share units)
- Trading Information:
- Trading symbol: RBRK
- Stock exchange: New York Stock Exchange (NYSE)
- Trading commenced: April 25th, 2024
- Offering expected to close: April 29th, 2024 (subject to customary closing conditions)
- Underwriters:
- Lead book-running managers: Goldman Sachs & Co. LLC, Barclays, Citigroup, and Wells Fargo Securities
- Goldman Sachs & Co. LLC served as the lead bookrunner
- Market Reaction:
- Shares ended the first trading day up almost 16%
Rubrik IPO Additional Insights:
- Rubrik’s strong IPO performance reflects the growing importance of cloud data security solutions.
- The high demand for shares indicates investor confidence in the company’s future prospects.
- The increased valuation compared to their last funding round in 2019 ( $3.5 billion) highlights the company’s significant growth.
Possible Future Developments:
- The additional share purchase option granted to the underwriters could further increase the capital raised by Rubrik IPO.
- The company’s stock price performance in the coming weeks and months will be closely watched as an indicator of investor sentiment.
- The success of the RUBRIK IPO could pave the way for further growth and expansion for Rubrik.
Potential IPO Candidates Following Rubrik’s Success
Rubrik’s successful IPO has cast a spotlight on the cloud data security market, potentially inspiring similar moves from its competitors. Here are some key players to watch:
- Cohesity: This company offers a data management platform that consolidates various secondary data workflows like backup, archive, and disaster recovery. Their focus on multi-functionality could position them as a strong competitor to Rubrik.
- Total Funding : $810M (Approx.)
- Valuation: $5 Billion (Approx.)
- Previous COHESITY IPO Dates (Cancelled): 2018-06-28 according to SEC filing
- Veeam: A well-established name in the data backup and recovery space, Veeam is actively expanding its cloud-based offerings. While their traditional strength lies in on-premises solutions, their success in capturing the cloud market share will be crucial for a potential IPO.
- Total Funding : $635M (Approx.)
- Valuation: $10 Billion (Approx.)
- Previous VEEAM IPO Dates (Cancelled): 2021-09-15 according to SEC filing
- Actifio: Known for its copy data management software, Actifio helps organizations efficiently manage data across diverse environments. Their expertise in data duplication and movement could be attractive to investors.
- Total Funding : $461M (Approx.)
- Valuation: $2 Billion (Approx.)
- Previous ACTIFIO IPO Dates(Cancelled): 2009-07-01 according to SEC filing
- Acquired by Google Cloud on Dec 2, 2020
- Druva: Specializing in cloud data protection and management, Druva offers solutions tailored for the cloud era. Their recent significant funding round and focus on a high-demand market make them a strong candidate for an IPO in the near future.
- Total Funding : $475M (Approx.)
- Valuation: $2 Billion (Approx.)
- Previous DRUVA IPO Dates(Cancelled): 2019-07-02 according to SEC filing
- Commvault: Providing data protection and information management software across various environments, Commvault caters to a broad user base. Their ability to adapt to the evolving cloud landscape will be a key factor in their potential IPO success.
- Total Funding : $475M (Approx.)
- Market Cap: $4.34B USD
- COMMVAULT Share Price : CVLT:NASDAQ
Important Note:
It’s impossible to predict precise listing prices for these potential IPOs. The final price will depend heavily on various factors, including:
- Market conditions at the time of the IPO
- The financial performance of each company
- Investor sentiment towards the cloud data security market
While Rubrik’s IPO provides a reference point, the actual listing prices for its competitors will likely differ based on their unique circumstances.
Disclaimer: This information is for informational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.
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