Route Mobile up 7% as Goldman Sachs, Kuwait Investment Authority pick stake

Goldman Sachs India Fund, Goldman Sachs Trust Emerging Markets Equity Fund and GS FDS Sicav GS Global Emg Mkts EQ Portfolio bought a combined 2.41 million equity shares worth of Rs 170 crore on Monday

Shares of Route Mobile rallied 7 per cent to quote at Rs 694 on the National Stock Exchange (NSE) on Tuesday after foreign portfolio investors (FPIs) such as Goldman Sachs and Kuwait Investment Authority acquired shares worth of Rs 210 crore of the company on its debut on Monday.

The stock bounced back 9 per cent from a low of Rs 636 hit in the intra-day trade today. It was, however, trading 5 per cent lower from a high of Rs 735 touched on its listing day.

On Monday, Goldman Sachs India Fund Limited, Goldman Sachs Trust Emerging Markets Equity Fund and GS FDS Sicav GS Global Emg Mkts EQ Portfolio bought a combined 2.41 million equity shares worth of Rs 170 crore. These investors purchased shares at price of Rs 705.95 per share on the NSE on bulk deal, data show.

Meanwhile, Kuwait Investment Authority A/C Kuwait Investment Auth FD 225 lapped up 578,504 shares of Route Mobile at Rs 697.25 per share, data show. The names of the sellers were not ascertained immediately. CLICK HERE TO READ FULL REPORT

Route Mobile made a stellar debut at the bourses on Monday, ending the session at Rs 650, a gain of 86 per cent against its issue price of Rs 350 per share.

Route Mobile is one of the leading providers of cloud-communication platform as a service (CPaaS) to enterprises, over-the-top (OTT) players and mobile network operators (MNOs). It provides voice, email, and omni-channel communication, SMS analytics, firewall, filtering and monetization, SMS hubbing and Instant Virtual Number solutions.

The CPaaS platform providers have witnessed traction over the recent years as mobile channels have become increasingly important for brands and enterprises to connect with customers. Analysts expect the trend to continue on the back of rising mobile subscribers globally and growing preference of digitalisation of businesses as well as communication. They expect Route Mobile to be a key beneficiary of this trend.

At 12:23 pm, the stock was trading 5 per cent higher at Rs 683 on the NSE as compared to 0.90 per cent decline in the Nifty 50 index. A combined 3.9 million equity shares had changed hands on the counter on the NSE and BSE till the time of writing of this report.