Route Mobile raises Rs 867 cr via QIP

Route Mobile announced that it has raised Rs 867.49 crore through qualified institutional placement (QIP).

The QIP issue saw interest from a mix of international and domestic investors. Several existing and new shareholders participated in the QIP and some of the largest investors in the QIP includes Steadview Capital Mauritius, RBC Asia Pacific Ex-Japan Equity Fund, Kuber India Fund, HSBC Global Investment Funds - Asia Ex Japan Equity Smaller Companies, Societe Generale - ODI, Verdipapirfondet DNB Global Emerging Markets, Pinebridge Global Funds - Pinebridge Asia Ex Japan Small Cap Equity Fund, Pinebridge Global Funds - Pinebridge India Equity Fund.

Following the completion of the QIP, Rajdipkumar Gupta, the managing director and group CEO of Route Mobile, said, "We are delighted with the participation of the new investors who have come on-board and continuing support of our existing investors, thereby ensuring a diversified and high quality investment community base of Route Mobile. We will endeavor to deliver on their expectations in terms of business performance. We have also closed the acquisition of Masivian S.A.S., Colombia, and are pleased to announce that Masvian S.A.S. is now a step- down wholly owned subsidiary of Route Mobile (w.e.f. 11 November 2021). We paid the first tranche of the total consideration of $49.04 million to consummate the acquisition. Masivian S.A.S. will help us grow in Latin America and strengthen our presence in the region."

The QIP opened on 8 November 2021 and closed on 12 November 2021. The floor price of the QIP issue was Rs 1,949.24 per equity share.

On 12 November 2021, the board approved the allotment of 46,84,116 equity shares, to eligible QIBs at the issue price of Rs 1,852 per equity share, taking into account a discount of 4.99% to the floor price of Rs 1,949.24 per equity share, aggregating to Rs 867.50 crore.

The company intends to utilize the net proceeds for augmenting long term cash resources, to fund the organic or inorganic growth opportunities in the area of its operations and adjacencies, for making investments in companies whether a subsidiary, joint venture, associates or otherwise (either through debt or equity or any convertible securities), growth of existing businesses or to enter into new businesses in line with the strategy of the company or for any other general purposes.

Route Mobile is a cloud communications platform service provider, catering to enterprises, over-the-top (OTT) players, and mobile network operators (MNO). RML's portfolio comprises solutions in messaging, voice, email, SMS filtering, analytics, and monetization. The company posted a 28.6% jump in consolidated net profit to Rs 42.07 crore on a 24.7% increase in net sales to Rs 435.67 crore in Q2 FY22 as compared to Q2 FY21.

Shares of Route Mobile lost 0.14% to end at Rs 1,924.90 on Thursday, 18 November 2021. The domestic stock market is shut today, 19 November 2021, on account of Guru Nanak Jayanti.

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