Route Mobile IPO subscribed more than four times on day before its close

Route Mobile IPO comprises fresh fund raising worth Rs 240 crore and the remaining is a secondary share sale by promoters

The Rs 600-crore IPO of Route Mobile was subscribed more than 4x on Thursday, a day before its close. The 12.17-million share offering has garnered bids for 50.6 million shares, showed data by the exchanges. Most bids came from retail inv­e­stors. 

Route Mobile has already allotted sha­res worth Rs 180 crore to anchor investors. The IPO comprises a fresh fundraise of Rs 240 crore, with the remainder being a secondary share sale. Proceeds will be used to pare debt and make strategic acquisitions. The price band has been set at Rs 345-350 per share. At the top end, the firm will be valued at Rs  2,000 crore on a post-dilution basis. Further, the P/E multiple based on FY20 earnings is close to 30x — similar to other mid-sized IT firms.