New Delhi: Route Mobile has received markets regulator Sebi’s approval to raise an estimated ₹ 600 crore through an initial share-sale.
Incorporated in 2004, Route is among the leading cloud- communication platform service providers to enterprises, over-the-top players and mobile network operators. The company had filed draft papers with Sebi in January, seeking its clearance to float an initial public offer (IPO) and received its “observations" on 16 August, as per the latest update with the markets regulator.
Sebi’s “observations" are necessary for any company to launch a public issue like IPO, follow-on public offer (FPO) and rights issue.
The IPO comprises fresh issue of shares worth ₹ 350 crore and an offer-for-sale of up to 65 lakh shares by founders Sandipkumar Gupta and Rajdipkumar Gupta, draft papers filed with Sebi showed.
Funds raised through the public issue will be used towards investment in Route Mobile (UK) Ltd for payment of the loan availed from Deutsche Bank AG as well as for acquisitions and other strategic initiatives.
Further, proceeds will be used for investment in subsidiaries for purchase of office premises in London and Singapore; purchase of business process outsourcing centre in Noida and for other general corporate purposes.
According to merchant banking sources, the IPO is aiming to raise ₹ 600 crore and the offering will value Route Mobile at around ₹ 2,500 crore.