Categories: Industry News

Route Mobile gets SEBI nod for Rs 600 cr IPO

Omni Channel Cloud Communications Service Provider, RouteMobile, has received market regulator Securities and Exchange Board of India’s nod to raise an estimated Rs 600 crore through the Initial Public Offering (IPO) route. The company had initially filed for its IPO in January 2018, it refiled its document on 3 October 2019.

The Company was issued final observations by capital market regulator, SEBI on 24 December 2019, according to the information published on its website

According to the Draft Red Herring Prospectus (DRHP) filed by the company, the offer comprises of a fresh issue worth Rs 240 crore and an Offer For Sale (OFS) of Rs 360 cr by the promoters, Y Sandipkumar Gupta and Rajdipkumar Gupta. Additionally, a pre ipo placement of upto aggregating upto Rs 100 crores may be considered in consultation with the BRLMs which will reduce the size of the offer, retrospectively

ICICI Securities Limited, Axis Capital Ltd, Edelweiss Financial Services Ltd, IDBI Capital Markets & Securities Limited are the BRLMs to the issue.

The company will use Rs. 36.9 crore towards repayment and advance payment of certain borrowings, Rs 83 crore for acquisitions and other strategic initiatives besides the purchase of an office premise.

The company has serviced more than 27500 clients across sectors including BFSI, Aviation, Retail, E-Commerce, Logistics, Healthcare, Hospitality, Media and Entertainment, Pharmaceuticals and Telecom. It’s  total revenue increased at a CAGR of 37.87 per cent from Rs 4,575 million in FY2017 to Rs 8,446.68 million in FY 2019.

Route Mobile hasn’t any capital infusion in the company since 2007, all the growth has been funded through internal accruals and the strategy going forward would be to augment its cloud services across multiple channels of communication, cross sell and upsell multiple solutions to enterprises to become a one stop solution and adopt a bi modal go to market strategy via its developer community programme.

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