Route Mobile gains on bargain buying

Route Mobile rose 2.22% to Rs 1994.45, amid some bit of value buying.

The stock had declined by 5.16% in four sessions to end at Rs 1,951.20 yesterday, from its recent closing high of Rs 2,057.35 recoded on 15 September 2021.

On the technical front, the stock's RSI (relative strength index) stood at 77.754. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading above its 100-day and 200-day daily simple moving average (SMA) placed at 1863.58 and 1627.21, respectively. It is, however, trading below its 50-day SMA placed at 2008.56.

In an exchange filing made during market hours today, the company said that its board has approved raising of funds through issuance of either equity shares or debt securities in one or more tranches for an aggregate amount not exceeding Rs 2000 crore, subject to necessary approvals.

In order to give effect to the above, the board of directors has constituted and authorized fund-raising committee of the board to, inter alia, decide the terms and conditions of the proposed fund raising.

The board has decided to convene an extra-ordinary general meeting (EGM) of the members of the company on Saturday, 16 October 2021, to seek the approval of the members for the proposed fund-raising activities.

Route Mobile is a cloud communications platform service provider, catering to enterprises, over-the-top (OTT) players and mobile network operators (MNO).

The company's consolidated net profit jumped 27.4% to Rs 34.32 crore on a 21.9% increase in net sales to Rs 377.52 crore in Q1 June 2021 over Q1 June 2020.

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