Route Mobile IPO Subscribed 74.36 Times On Final Day Of Bidding
The Mumbai-based firm plans to raise Rs 600 crore by selling up to 1.71 crore shares at Rs 345-350 apiece.
Route Mobile Ltd.'s Rs 600-crore initial public offering was subscribed 74.36 times on the final day of bidding, led by demand from non-institutional investors.
The maiden issue received 89.23 crore bids against 1.2 crore shares on offer as of 5:00 pm on Friday, according to data by Axis Capital. The portion reserved for non-institutional investors subscribed 195.61 times, while institutional investors bid 91.06 times on shares earmarked for them. The category for retail investors subscribed 12.85 times so far.
The Mumbai-based email, voice, messaging and analytics services provider, in its red herring prospectus, had said it would use the proceeds from the share sale to repay debt, pursue its strategic initiatives and purchase office premises in Mumbai.
The company expects its revenue to grow at 30-35% in the fiscal ending March 2021, benefiting from the consolidation in the telecom sector and digital transformation of entities.
Route Mobile has direct connection with 240 telecom companies and more than 800 mobile network operators globally. In 2019-20, almost 97% of its revenue came from messaging services. It's closest competitor is Tanla Solutions Ltd.