Route Mobile files Rs 600-cr IPO papers with Sebi

Route Mobile Ltd today filed draft papers with markets regulator Sebi to raise an estimated Rs 600 crore through an initial share-sale.
Incorporated in 2004, Route is among the leading cloud- communication platform service providers to enterprises, over-the-top players and mobile network operators.
The initial public offer (IPO) comprises fresh issue of shares worth Rs 350 crore and an offer for sale of up to 65 lakh shares by founders Sandipkumar Gupta and Rajdipkumar Gupta, draft papers filed with Sebi showed.
Funds raised through the public issue will be used towards investment in Route Mobile (UK) Ltd for payment of the loan availed from Deutsche Bank AG as well as for acquisitions and other strategic initiatives.

Further, proceeds will be used for investment in subsidiaries for purchase of office premises in London and Singapore; purchase of business process outsourcing centre in Noida and for other general corporate purposes.
According to merchant banking sources, the IPO is aiming to raise Rs 600 crore.
The company's revenue from operations stood at Rs 463.09 crore in 2016-17, while profit after tax was at Rs 60.63 crore.
Motilal Oswal Investment Advisors, Yes Securities and IDBI Capital Markets and Securities will manage the company's IPO.