India: Route Mobile IPO Subscribed 4.21 Times On Day 2

The ₹600 crore IPO by Route Mobile was subscribed 4.21 times on Thursday, the second day of the public offering, led by strong interest from retail investors.

As per stock exchange data, the issue received bids for 5.05 crore shares by the end of the day, which was 4.21 times the total issue size of 1.2 crore shares.

The retail investors portion was subscribed 6.81 times. Non-institutional investors subscribed 2.07 times and the portion set aside for qualified institutional buyers has been subscribed 1.27 times.

The IPO price band is set at ₹345- ₹350 per share.

The company will utilise the proceeds for repayment of certain borrowings, acquisitions and other strategic initiatives.

Before the issue opened, Route Mobile raised ₹180 crore from anchor investors at the higher end of the price band at ₹350 per share.

Motilal Oswal Securities in an IPO note said “The issue is valued at 29 times FY2020 price earnings, which is comparable to mid-sized IT firms. It has recommended ‘Subscribe’ to the IPO given the company’s strong presence in the niche CPaaS market with high entry barriers and healthy financials. “Given the small offer size and presence in niche IT space, one may get listing gains too”.

This article was first published on livemint.com.

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