Route Mobile IPO fully subscribed on first day of bidding
The initial public offer of Route Mobile was fully subscribed on the first day of bidding on Wednesday.
The Rs 600-crore public offer of Route Mobile, a cloud communications service provider, received bids for 1,22,31,600 shares as against the total issue size of 1,21,73,912 shares, according to data available with the NSE.
The category meant for non-institutional investors was subscribed 46 percent, that for qualified institutional buyers (QIBs) was subscribed 1 percent, while retail individual investors' portion was subscribed 1.80 times.
Route Mobile on Tuesday garnered Rs 180 crore from anchor investors.
Goldman Sachs, Franklin Templeton Mutual Fund, SBI Life Insurance, Kuwait Investment Authority, Vantage Equity Fund, Axis Mutual Fund, Macquarie, and SBI Mutual Fund are among the anchor investors, according to information available with stock exchanges.
The initial public offer comprises fresh issue of Rs 240 crore and an offer for sale of Rs 360 crore.
Price range for the offer, which will close on Friday, has been fixed at Rs 345-350 per share.
The company proposes to utilise the net proceeds for repayment or pre-payment, in full or part, of certain borrowings of the company, acquisitions and other strategic initiatives, purchase of office premises in Mumbai, and general corporate purposes.
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The company received approval from markets regulator SEBI in December 2019 to float IPO.
The cloud communications service provider had initially filed for its IPO in January 2018. Later, it refiled its document in October 2019. According to market sources, the company failed to bring its IPO even after receiving approval in 2018 because of unfavourable market conditions.
ICICI Securities, Axis Capital, Edelweiss Financial Services, and IDBI Capital Markets and Securities are the managers to the offer.
Route Mobile does not have a direct comparable listed peer in India. It will become the second firm in the larger mobile communication services after Affle India.
(Disclaimer: Additional background information has been added to this PTI copy for context)