Route Mobile makes blockbuster debut

Shares of Route Mobile were trading at Rs 641 at 10:15 IST on the BSE, a premium of 83.14% over the initial public offer price of Rs 350.

The stock was listed at Rs 708, a premium of 102.29% to the initial public offer (IPO) price of Rs 350 a share. So far the stock hit a high of Rs 735 and low of 626.25. On the BSE, 15.36 lakh shares were traded on the counter so far.

The IPO of Route Mobile received bids for 89.23 crore shares as against 1.21 crore shares on offer, as per the National Stock Exchange of India (NSE) website data. The issue was subscribed 73.30 times. The issue opened for bidding on 9 September 2020 and closed on 11 September 2020. The price band for the IPO was set at Rs 345-350 per share.

The non-institutional investors category was subscribed 192.81 times. The qualified institutional buyers (QIBs) category was subscribed 89.76 times. The retail individual investors (RIIs) category was subscribed 12.67 times.

The IPO comprised fresh issue of up to Rs 240 crore and offer for sale of equity shares by existing promoters aggregating to Rs 360 crore.

The company on 8 September 2020 raised around Rs 180 crore from anchor investors, ahead of its initial share sale. The company allotted 51.42 lakh shares at a price of Rs 350 per share to a total of 15 anchor investors.

The anchor investors include Franklin Templeton Mutual Fund, Goldman Sachs, SBI Life Insurance, Kuwait Investment Authority, Vantage Equity Fund, Axis Mutual Fund, Macquarie, Theleme Master Fund, SBI Mutual Fund, ICICI Prudential, Nippon India, Aditya Birla Sun Life, IIFL, Trust & Services Custody Bank as trustee of Wells Capital and Mirae Asset Mutual Fund. A total of seven mutual funds have applied through 15 schemes for anchor allotment.

The net proceeds from the issue will be utilized to fund repayment or pre-payment, in full or part, of certain borrowings of about Rs 36.5 crore; acquisitions and other strategic initiatives of about Rs 83 crore; purchase of office premises in Mumbai of about Rs 65 crore; and general corporate purposes.

On a consolidated basis, Route Mobile recorded sales of Rs 309.61 crore and net profit of Rs 27.09 crore in the quarter ended on 30 June 2020.

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