Route mobile IPO

Route Mobile IPO

Cloud communication company Route Mobile IPO will open on September 9. This issue can be subscribed till September 11. The company has planned to raise Rs 600 crore from the primary market through this issue.

Route mobile IPO price band

The company has kept a price band of Rs 345–350 for the IPO. 240 crore fresh shares will be issued in the issue. The existing shareholders will sell shares worth Rs 360 crore under the offer for sale (OFs). Among them Sandeep Kumar Gupta and Rajdeep Kumar Gupta are about to sell shares worth Rs 180-180 crore.

Reason for Route mobile IPO Issue

The company has said that the proceeds from the IPO will be used for repayment of debt or premature payment, acquisition and other strategic purposes. Apart from this, the company is also going to buy office in Mumbai with this money.

Financial conditions of Route mobile

The company had a profit of Rs 79.60 crore in FY 2019-20. The company had made a profit of Rs 74.8 crore in FY 2018-19 and Rs 58.10 crore in FY 2017-18. Its return on equity (ROE) stood at 30 per cent for FY 2019-20, up from 36 per cent in FY 2018-19 and FY 2017-18.

The company’s post-tax profit margin was 8% in FY 2019-20, compared to 9% in FY 2018-19 and 11% in FY 2017-18.

ParticularsFY2018FY2019FY2020Q1 FY2021
Total assets447.365 Cr.505.781 Cr.626.54 Cr.634.83 Cr.
Total Revenue312.29 Cr.968.40 Cr.852.37 Cr.509.48 Cr.
Profit after tax26.93 Cr.69.10 Cr.54.53 Cr.46.67 Cr.
Price to Earning ratio25

Business model

The company operates in 3 types of business

1. Business process outsourcing (BPO)

The Company provides a variety of BPO services including client support, technical support, booking, and collection services.

2. Mobile operator

Services during this segment include SMS analytics, firewall, filtering, monetization, and CPaaS, and hubbing solutions.

3. Enterprise

The Company provides a cloud-communication platform as a service to enterprises, over-the-top players, and mobile network operators round the world.

Route Mobile IPO details

ParticularsDetails
Bid/Offers open onSep 9, 2020
Bid/Offers closed onSep 11, 2020
Issue size(.) Eq Shares of face value Rs. 10
(aggregating up to Rs. 600.00 Cr)
Face valueRs. 10 per equity share
IPO PriceRs. 345 to Rs. 350 per equity share
Listing AtNSE/BSE Exchange
Fresh Issue(.) Eq Shares of Face value Rs. 2
(aggregating up to Rs. 240.00 Cr
Offer for sell(.) Eq Shares of face value Rs. 2
(aggregating up to Rs. 360.00 Cr)
P/E ratio25
Finalization of Basis of AllotmentSep 16, 2020
Initiation of RefundsSep 17, 2020
The credit of Shares to Demat AccountSep 18, 2020
Route mobile IPO Shares Listing DateSep 21, 2020
Market a LotOne lot will issue 40 equity shares.
Minimum share order quantity40 Equity shares
Minimum Lots booking QuantityThe minimum lot booking is 1, 40 shares, the price of 90 shares is Rs. 14000.00
Maximum Lots booking quantityThe maximum lot booking is 14, 560 Shares in 14 lot, The price of 1170 shares is Rs. 19600.00
Issue TypeBook Built Issue IPO

Active customer

Started in the year 2004, the company has served 30,150 customers till 30 June. The company is active in three core businesses, including enterprises, mobile operators and business process outsourcing. The company’s customers are in Africa, Asia Pacific, Europe, Middle East and North America.

Position in the world

The company’s total billable transactions grew at a rate of 38 per cent. According to the A2P SMS Messaging Vendor Performance Report 2017, the company was ranked second in Tier-1 application service worldwide and first in value added services.

Route Mobile IPO Lead Manager

  1. IDBI Capital Market Services Limited
  2. ICICI Securities Limited
  3. Edelweiss Capital Limited
  4. Axis Capital Limited

Route mobile IPO OFFER SIZE BY INVESTOR CATEGORY IN %

  • QIB- 50%
  • Retail Individual Investors- 35%
  • Non-Institutional Investors- 15%

Company Promoters:

Sandipkumar Gupta and Rajdipkumar Gupta

Check IPO Allotment status

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