Route Mobile IPO receives strong response, subscribed over 73 times

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The IPO of Route Mobile, a cloud communications service provider, which opened on Wednesday, ended today and the show has been syndicated more than 73 times. Prior to the IPO, Route Mobile had raised 180 crore from 15 key investors, including Goldman Sachs, SBI Life Insurance and SBI Mutual Fund. Route Mobile offered 1.71 crore of shares at a price range of 345-350 each.

the Route Mobile’s 600 crore public offering received offers for more than 89 crore shares against the total issue size of 1.21 crore.

The Qualified Institutional Buyer (QIB) category was subscribed 91 times, the Non-Institutional Investor category 195.61 times and the Retail Individual Investor portion was subscribed 12.85 times, reported Press Trust of India, citing reports. investment bankers.

Route Mobile’s IPO included a new share issue worth 240 crore and an offer to sell (OFS) of 360 crore by the promoters, which would result in a reduction of the promoter’s stake from 96.0% before the IPO to 66.3% after the IPO.

According to brokerages, shares of Route Mobile are expected to be listed on September 21. KFintech Pvt Ltd is the registrar of the show. ICICI Securities, Axis Capital, Edelweiss Financial Services and IDBI Capital Markets & Securities are the managers of the issue.

Route Mobile Limited provides a cloud-as-a-service (“CPaaS”) communication platform to enterprises, over-the-top (OTT) players and mobile network operators. Incorporated in 2004, it serves clients in industries such as social media, banking and financial services, retail, logistics, and more.

Its operating revenues grew at a CAGR of 37.61% from 504.9 from 2018 to 956.2 crore in fiscal year 2020. In the first quarter of fiscal year21 Route Mobile reported a profit of 27 crore on the income of 310 crore. The company had recorded a profit of 69 crore in FY20, up 26% from the previous year.

The funds from the new issue will be used to repay debt, make strategic acquisitions, buy offices in Mumbai and the balance for general purposes. (With contributions from the agency)

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