The reception of the Indian stock markets to the initial public offering (IPO) of technology companies continues remain extremely buoyant with Route Mobile making a stellar debut with over 100 percent rise on day one of its listing.
The IPO of Route Mobile was priced at Rs 350 per share and it got listed at a price of Rs 717 on the National Stock Exchange (NSE), which was a 105 percent rise. This stellar debut of the company reveals the appetite of the stock markets for good quality technology companies.
Analysts had expected Route Mobile to debut at a significant premium to its issue price of Rs 350 per share, citing robust investor appetite given the company’s strong growth potential on account of its market leading position in the cloud-communications space.
The other technology company which also had similar IPO opening on the stock marks was Ashok Soota-led Happiest Minds which opened at 111 percent premium on the opening day.
Route Mobile, the cloud communication platform for enterprises, has priced its Rs 600-crore IPO offer in the range of Rs 345-350 per share. The bidding process itself was very positive with the issue oversubscribed 74 times.
The company received bids for over 89 crore shares as against the total issue size of 1.21 crore shares. The initial public offer comprises fresh issue of shares worth Rs 240 crore, and an offer for sale (OFS) of Rs 360 crore.
Route Mobile plans to utilise the IPO proceeds for repayment of certain loans, acquisitions and other strategic initiatives, purchase of office premises in the Mumbai region, and general corporate purposes.
Founded in 2004 by Rajdipkumar Gupta and Sandip Gupta, Route Mobile offers enterprise clients a cloud communications platform that can be deployed and integrated with existing business applications and systems. The platform started by offering pure-play SMS and kept upgrading by adding newer features with the aim of helping customers in “simplifying communications”.
Edited by Kanishk Singh