 "Route Mobile IPO fully subscribed on day 1, most bids from retail investors")
The Rs 600-crore IPO of Route Mobile garnered full subscription on Wednesday, the first day of the issue. Most of the bids so far have come from retail investors. The mobile technology enabler had on Tuesday allotted shares worth Rs 180 crore to anchor investors which included SBI Mutual Fund, Goldman Sachs and Franklin Templeton. Route Mobile IPO comprises fresh fund raising worth Rs 240 crore and the remaining is a secondary share sale by promoters.
The funds raised will be utilized to repay debt, make strategic acquisition and purchase office premises in Mumbai. The price band for the IPO is Rs 345 to Rs 350 per share.
At the top-end, the company will be valued at nearly Rs 2,000 crore on post-dilution basis. Also, the price-to-earnings multiple on based on FY20 earnings works out to nearly 30 times, which is similar to other mid-sized IT firms.
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