Route Mobile IPO Subscribed 73 Times

Route Mobile's Rs 600 crore initial public offer (IPO) received a stellar response from the investing community. The cloud communication platform provider's IPO was subscribed 73.30 times, receiving bids for more than 89 crore shares as against the total issue size of 1,21 crore shares, as per data available on the stock exchanges. The public offer was open for bidding between September 9 and September 11, 2020.

The Happiest Minds IPO earlier in September had also attracted a strong, 151 times subscription.

The retail investors portion received total subscription of 12.67 times, non-institutional investors segment attracted bids to the extent of 192.81 times and the portion set aside for qualified institutional buyers was subscribed 89.76 times. Route Mobile has fixed the price band at Rs 345-350 per share.

The public offering comprised fresh issue of Rs 240 crore and offer for sale (OFS) of Rs 360 crore. The shares will be listed on both BSE and the NSE on September 21.

Going into the IPO, Route Mobile had raised Rs 180 crore from anchor investors, including the likes of Franklin Templeton Mutual Fund, Goldman Sachs, SBI Life Insurance, Kuwait Investment Authority and Axis Mutual Fund.

Route Mobile will utilise the issue proceeds to repay existing debt, make acquisitions, buy office premises in Mumbai and for general corporate purposes.

The book running lead managers of the issue were ICICI Securities, Axis Capital, Edelweiss Financial Services and IDBI Capital Markets & Securities.

Sandipkumar Gupta and Rajdipkumar Gupta had set up Route Mobile in 2004. The company caters to clients in Africa, Asia Pacific, Middle East, Europe and North America.

Route Mobile IPO is the fourth public offering this year, following the SBI Cards and Payment Services' share offering in March, Rossari Biotech's share sale in July and Happiest Minds IPO at the beginning of the month.