Route mobile is a leading communications platform as a service provider and a tier-one application-to peer service provider. This organization has been enhancing mobile communications through technology upgrades and product innovations. This enterprise helps in communication services like new age solutions in messaging, voice, email and SMS filtering analytics and monetization.
The objective of this issue is to use these funds for repayment or pre-payment of the company as well as for acquisitions and other strategic initiatives. The purchase of fixed asset i.e. property in Mumbai for office purpose is also one of the causes for issuing the IPO, as well as generate corporate purposes can be served with the capital receivable.
The IPO date opened on 09th September and closed on 11th September. The type of issue is book building process IPO. The entire issue size is amounting to up to 600crores and the number of shares issued are 17,391,303 equity shares. The IPO price band is from 345-350Rs.
The shares have been listed on the stock exchanges of BSE and NSE on 21st September. 1 lot of market share is equal to 40 equity shares. And maximum 14 lots can be subscribed for.
The stock listed on 21st September had a massive premium of 102.3% after having a strong response to the public issue. The stock started with a hit of Rs. 708 against the issue price of Rs. 350
Analysts had expected that Route mobile will list with a premium of 60% over the IPO price. After listing the stock price was quoted at 29 times for FY20 earnings per share.
In its IPO report, Motilal Oswal Securities said that the company has a lean balance sheet with negligible debt and healthy return ratios. “Its working capital is also negligible as it has a large pre-paid client base that pays upfront,” Motilal noted.
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