Route Mobile IPO Review: Should you invest?

The Omni-channel cloud communication service provider, Route Mobile has opened the IPO on Wednesday. Ahead of its 600 crore IPO, it has raised around 180 crore from 15 anchor investors like Goldman Sachs, SBI Life Insurance and SBI mutual fund.

Through this IPO, the company plans to offer 1.71 crore shares at a price band of Rs 345-350 per share. The offer will end on September 11. Here are the details of the IPO.

Route Mobile Company Profile

Launched in 2004, Route Mobile is a leading cloud-communication service provider catering to business enterprise, over the top players and mobile network operators. It includes providing a solution to peer- to- peer application, 2 way messaging services, OTT business messaging services, voice emails, etc.

The company is global and has nine direct and 12 steps down subsidiaries. Its clients are spread across the world in Africa, Asia Pacific, North America, Europe, and Middle East.

Route Mobile IPO details

Through this IPO, the company plans to garner Rs 600 crore. The IPO includes a fresh issue of 240 shares and an offer of sale of Rs 360 crore through the promoters. The price band of public issue is Rs 340-350 per share. The investor can bid for a multiple of 40 equity shares.

Issue open- 9^th Sep 2020 to 11 Sep 2020

Face Value- Rs 10 per share

Fresh Issue- 0.67 crore shares

Offer for sale: 1.04 crore shares

Listed on: NSE, BSE

Minimum Bid: 40 per share

Route mobile revenue and net profit has increased at a compounded annual rate of 38%, 12% and 14%, from last fiscal. In the financial 2020 the company has reported more than 30.31 billion billable transactions and has processed more than 6.95 billion transactions.

The company has diversified offerings and has a global client base. Its robust infrastructure, consistent financial record, no listed peers in the market and experienced management team makes this IPO worth investing.

But there are certain key factors that the investor should look into before investing like a high attrition rate, inability to maintain a relationship with key mobile operators, fluctuations in the Forex market and high concentration of clients outside India. We recommend you to invest in this IPO.