Route Mobile slips as QIP issue begins

Route Mobile fell 1.04% to Rs 1967 after the company announced the launch of its QIP (qualified institutional placement) of equity shares.

The company said that its fund raising committee at the meeting held yesterday (8 November 2021) authorized the opening of the qualified institutions placement (QIP). It also approved and adopted the preliminary placement document in connection with the QIP.

The floor price of the QIP issue is Rs 1949.24 per equity share, the comapny said in a regulatory filing. The floor price is set at a discount of 1.93% to Monday's closing price of Rs 1987.70 per share.

A meeting of the fund raising committee of the company shall be held on Friday, 12 November 2021, to consider and determine the issue price of equity shares to be issued pursuant to the QIP.

In its draft placement document filed with the bourses, Route Mobile said that it 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.

On 22 September 2021, the board of Route Mobile had approved raising of funds through issuance of either equity or debt or any combination thereof, for an aggregate amount not exceeding Rs 2000 crore.

The fund raising proposal was approved by the company's shareholders via a special resolution at its extra-ordinary general meeting (EGM) held on 16 October 2021.

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 22.58% jump in consolidated net profit to Rs 42.07 crore on a 15.4% increase in net sales to Rs 435.67 crore in Q2 FY22 as compared to Q1 FY22.

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