Route Mobile IPO day 1: Issue fully subscribed

Retail investors portion 1.8 times

Mumbai: Route Mobile, among the leading Omnichannel Cloud Communication Service Provider (CPaaS), to enterprises, over-the-top (“OTT”) players and mobile network operators (“MNOs”), with a client base including world’s largest and well known organizations across social media companies, banking and financial services, aviation, retail, e-commerce, logistics, healthcare, hospitality, telecom sector;  launched its initial public offering on Friday, September 4, 2020. The issuewas fully subscribed 1 times on day one of bidding.

Amongst first few IPO to be launched amidst the pandemic, Route Mobile received bids for 1,22,31,600  shares, as per NSE/ BSE data. The portion reserved for retail individual investors was subscribed 1.80 times. The portion reserved for NII was subscribed 0.46 times. The category of NII includes subscriptions from corporates and individuals other than retail individual investors. The portion reserved for institutional investors i.e. Qualified Institutional Buyers (QIBs) was subscribed 0.01 times.

The price band for the IPO was fixed at ₹ 345 – ₹ 350 per Equity Share. On Day 1, the IPO received 1,22,31,600 bids, as against the total issue size of 1,21,73,912 equity shares. The bidding for the IPO closes on Friday, September 11, 2020.  


Yesterday, Route Mobile had finalized the allocation of 51,42,856 shares at Rs 350 apiece to 15 anchor investors. Based on the price the total proceeds would be to the tune of 180 crores.

The company found interest and participation from well-known institutions across the globe particularly US, UK and Asia besides participation from some large mutual funds in India. The participants to the anchor investor bidding were Franklin Templeton Mutual Fund, Goldman Sachs, SBI Life Insurance, Kuwait Investment Authority, Vantage Equity Fund, Axis Mutual Fund, Macquarie, Theleme Master Fund, SBI Mutual Fund, ICICI Prudential, Nippon India, Aditya Birla Sun Life, IIFL, Trust & Services Custody Bank , trustee of Wells Capital and Mirae Asset Mutual Fund

ICICI Securities Limited, Axis Capital Limited, Edelweiss Financial Services Limited and IDBI Capital Markets & Securities Limited have been appointed as the book running lead managers to the Offer and KFin Technologies Private Limited is appointed as the Registrar to the Offer.

Brokerage houses like Hem Securities, Choice Capital, Asit C Mehta Investment Intermediates, Religare Broking, Angel Broking, Dealmoney & Investmentz have given the issue a subscribe rating with a long term view considering its diverse offerings to enterprises across a broad range of industries, established presence in all major geographies, continuous investment in technology, product and service offerings, its focus on innovation besides the company’s leadership in the cloud communications space along with the industries future prospects and positive trends

 Incorporated in 2004, the Company has served more than 30,150 clients since its inception, as of June 30, 2020. The Company has been ranked 2nd Globally as a tier 1 application-to-peer service provider and 1st for value added services amongst tier 1 vendors as per the “A2P SMS Messaging Vendor Performance Report 2017” dated June 2017 prepared and issued by Roaming Consulting Company Limited. The company operates through prepaid and post paid business models with high operating margins and low cost base.

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