Street signs: Route Mobile IPO, brokers eye tech improvement, and more

Route sees grey market demand

Route Mobile shares are commanding a premium of more than 50 per cent in the grey market ahead of its Rs 600-crore initial public offering (IPO). According to market players, the premium had shot up to 70 per cent but has come off a bit following last week’s correction. “Being a mobile technology company, there is huge growth potential. Also, the sector has been less impacted by the Covid-19 pandemic,” said an analyst. Route Mobile’s IPO opens on Wednesday and is priced at Rs 345-Rs 350 per share. The IPO comprises Rs 340 crore fresh fundraise and another Rs 360 crore secondary share sale.

Samie Modak
 

Premiumisation in two-wheelers

All two-wheeler stocks have surged from their 2020 lows. For investors looking to enter this space, they are better of buying companies that offer premium motorcycles, believe some analysts. “A shift toward the work-from-home model would mean less need for vehicles for office-to-home rides. We suspect this would result in a decline in demand for commuter vehicles and would give rise to a preference for vehicles for leisure purpose. As the economy recovers post FY21, we see Eicher Motors as the key beneficiary of strong growth for premium motorcycles,” say analysts at BNP Paribas.

Sundar Sethuraman

Brokers eye tech improvement

Broking firms are aiming for technological advancements to keep pace with changes in the market dynamics. Sources said many players are looking to hire developers and senior staffers from the e-commerce and IT industry to boost their technology capabilities. “Tech is emerging as the centrepiece for the broking industry. Players with ease-to-use and glitch-free mobile applications will emerge as winners,” said an industry player. Last week, low-cost brokerage 5paisa.com appointed former Flipkart chief technology officer Ravi Garikipati on its board as an independent director.

Samie Modak