0

0

0

0

0

0

0

0

0

This article is more than 1 year old.

Route Mobile IPO opens today: Key things to know before subscribing

Mini

Cloud communications service provider Route Mobile is set to open its initial public offering (IPO) has opened today and will close on September 11.

Route Mobile IPO opens today: Key things to know before subscribing
Cloud communications service provider Route Mobile is set to open its initial public offering (IPO) has opened today and will close on September 11. This is the second IPO this week after Happiest Minds IPO, which was subscribed. The company proposes to raise Rs 600 crore through the IPO which comprises a fresh issue of shares worth Rs 240 crore and another Rs 360 crore will be raised through offer for sale (OFS) sale by the promoters. The stock is proposed to be listed both on NSE and BSE Ltd.
The company, yesterday, also raised Rs 180 crore from 15 anchor investors including Goldman Sachs, Franklin Templeton Mutual Fund, and SBI Life Insurance, among others.
Here are the key things to before subscribing the issue:
1) Objective: The company plans to utilise the fresh issue proceeds for repayment of certain borrowings, acquisitions and other strategic initiatives, purchase of office premises in Mumbai, and general corporate purposes.
2) Price Band: The public offer price band has been fixed at Rs 345-350 per share.
3) Minimum Bid: One can bid for a minimum of 40 equity shares and in multiples of 40 equity shares thereafter.
4) Book Managers: The book running lead managers include ICICI Securities, Axis Capital, Edelweiss Financial Services and IDBI Capital Markets & Securities. KFin Technologies is the registrar to the offer.
5) OFS: The Rs 360 crore OFS by promotes will include shares of up to Rs 180 crore by Sandipkumar Gupta and up to Rs 180 crore by Rajdipkumar Gupta.
6) Financials: Profit of the company for FY20 grew to Rs 69.1 crore versus Rs 54.53 crore in the previous year. Meanwhile, Revenue from operations rose by 13.2 percent to Rs 956.25 crore in FY20 from Rs 844.66 crore in FY19. Return on equity (RoE) stood at 30 percent for FY20 against 36 percent each in FY19 and FY18.
7) Background: Route Mobile is one of the leading providers of the cloud-communication platform as a service to enterprises, over-the-top (OTT) players and mobile network operators (MNOs). It provides voice, email, and omnichannel communication, SMS analytics, firewall, filtering and monetization, SMS hubbing and Instant Virtual Number solutions. It was incorporated in 2004. In April 2017, the company acquired a BPO Call2Connect, through which the company integrates the BPO capabilities with its enterprise voice platform. As of June 30, the company had served more than 30,150 clients.
next story