You are here: Home » Companies » News
Business Standard

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

Topics
Route Mobile Limited | IPOs | Retail investors

Sundar Sethuraman 

IPO market
The funds raised will be utilised to repay debt, make strategic acquisitions and purchase office premises in Mumbai.

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.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, September 10 2020. 18:04 IST
RECOMMENDED FOR YOU