Route Mobile IPO: Will Launch IPOs Worth Rs 600 crore on September 11

Route Mobile will launch IPO offers in the second week of September. After the dry spell of nearly four months, the Indian IPO market is gaining momentum again. Rossari Biotech ended the IPO hiatus in July, being the first company to float IPO offers amid the lockdown. The Indian IPO market, which has become one of the thriving IPO markets in the world suffered a set back when COVID-19 cases started to rise in the country. When the lockdown began, several companies thwarted their IPO launch plans considering arising uncertainties and volatility in the market. It is a positive indication that companies, as well as investors, are enthusiastically participating in the IPOs again.

Subscription for Route Mobile IPOs will begin in the second week of September. They received SEBI approval in December 2019. Route Mobile initially filed for IPO launch in 2018 but dropped out afterwards citing unfavourable market condition. They refiled in October 2019.

Route Mobile is hoping to raise Rs 600 crores in IPO. The offer will contain fresh shares worth Rs 240 crores and offer for sales (OFS) scrips from promoters Y Sandipkumar Gupta and Rajdipkumar Gupta worth Rs 360 crores.

Route Mobile is a cloud communication service provider based in Mumbai. The company, incorporated in 2004, is a tier-1 application-to-peer service provider which offers smart solutions in communication – filtration, analytics, monetisation, and BPO solutions to enterprises. Route Mobile has a strong footprint in the industry with 24500 plus clients, including several fortune 500 companies, and offices spreading in different continents in nineteen plus locations.

Key Points of Route Mobile IPO

Here are a few key points you need to take note of in case you want to apply for the upcoming IPO offer.

• Route Mobile IPO date is decided September 11 and investors can subscribe until September 16
• The stash contains fresh scrips as well as OFS shares
• There will be an additional pre-IPO aggregation of Rs 100 crore which might bring down the size of the initial offering
• For the time being, Route Mobile announced that their IPO size would be Rs 600 crores but according to sources, the company is expecting to garner around Rs 702 from the placement
• The shares will launch at face value of Rs 10 and are likely to be  placed in the price band of Rs 350-370 apiece
• Investors need to place a request of a minimum of 40 shares and maximum up to 520 shares
• The stocks will list in both NSE and BSE
• Route Mobile has appointed ICICI Securities, Axis Capital, Edelweiss Financial Services and IDBI Capital Markets & Securities its book manager and KFintech Private Limited as offer registrar
• Stock allotment will happen on September 21
• Route Mobile is the second IT firm to float IPOs in the market. Another IT firm, Happiest Minds also recently announced IPO launch on September 7

Route Mobile said in its red herring prospectus filing that the funds will be used towards payment and pre-payment of debts, acquiring new business and office in Mumbai, and general corporate purposes. The company’s asset and revenue both grew steadily between 2018 and 2020. In June 2020 quarter the company announced an income of Rs 3,112.95 million which is slightly lower than its previous quarter’s performance. Similarly, its profit also slid according to the latest financial statements.

How to apply for Route Mobile IPO

You can apply for Route Mobile IPO through a registered bank if you have ASBA available in your account. Or else, you can apply through your broker. If you are Angel One client, you can apply for the IPOs by login into your trading console. Select Route Mobile IPO from the IPO list and use UPI as a payment option.

Conclusion

IPO launch is a crucial decision for a company with long-term benefits, helping them raise equity capital from the market more efficiently. But should you subscribe to IPOs? Let’s consider with an example. India’s one of the largest IT firm Infosys launched IPOs in 1993. Those who invested in the IPOs at that time received a 1600 percent return on their investment. Successful investment in IPO depends on correctly identifying the offers which have the potential to grow. If you can find good prospects, the IPOs are an excellent choice to diversify your portfolio.

It is good to see that the IPO segment is turning around.  In July Rossarie Biotech launched the first IPO after a gap of four months, and the offer was subscribed record times by investors. Later, other companies too enjoyed success with their IPO launch. For example, Mindspace REIT IPO launch was subscribed 12.96 times.