BackRoute Mobile IPO draws strong response, subscribed over 73 times
Route Mobile IPO comprised fresh issue of shares worth ₹240 crore and an offer for sale (OFS) of ₹360 crore by promoters
PremiumThe IPO of Route Mobile, a cloud communications service provider, which opened on Wednesday, concluded today and the issue was subscribed over 73 times. Ahead of the IPO, Route Mobile had raised ₹180 crore from 15 anchor investors, including Goldman Sachs, SBI Life Insurance, and SBI Mutual Fund. Route Mobile offered 1.71 crore shares at a price band of ₹345-350 apiece.
The ₹600-crore public offer of Route Mobile received bids for over 89 crore shares as against the total issue size of 1.21 crore shares.
Qualified institutional buyers (QIBs) category was subscribed 91 times, non-institutional investors category 195.61 times and retail individual investors portion was subscribed 12.85 times, Press Trust of India reported, citing merchant bankers.
Route Mobile IPO comprised fresh issue of shares worth ₹240 crore and an offer for sale (OFS) of ₹360 crore by promoters which would result in promoter’s stake reducing from 96.0% pre-IPO to 66.3% post-IPO.
According to brokerages, Route Mobile shares are likely to get listed on 21st September. KFintech Pvt Ltd is the registrar of the issue. ICICI Securities, Axis Capital, Edelweiss Financial Services and IDBI Capital Markets & Securities are the managers to the issue.
Route Mobile Limited provides cloud-communication platform as a service ("CPaaS") to enterprises, over-the-top ("OTT") players and mobile network operators. Incorporated in 2004, It services clients across sectors such as social media, banking and financial services, retail, logistics etc.
Its revenue from operations increased at a CAGR of 37.61% from ₹504.9 in fiscal 2018 to ₹956.2 crore in Fiscal 2020. In Q1FY21, Route Mobile reported a profit of ₹27 crore on revenue of ₹310 crore. The company had posted profit of ₹69 crore in FY20, up 26% from the previous year.
The funds raised from fresh issue will be utilized to repay debt, make strategic acquisition, purchase office premises in Mumbai and balance for general corporate purpose. (With Agency Inputs)
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