Route Mobile smashing debut

about 6 months ago
No Image

Route Mobile made a smashing debut on the bourses today morning. As against the IPO price of Rs.350, the stock got listed on the BSE at Rs.708, a whopping 101.5% premium!

A stellar listing was expected but mostly at a premium of 50 to 60%; no one had expected this kind of a jump as see today.

The IPO had received an overwhelming response. It was subscribed 74.36 times, with HNIs taking the lions share at 195.61 times, institutional at 91.06 times and retail investors at 12.85 times.

Route Mobile provides cloud communication platform as a service (CPaaS) to enterprises, over-the-top (OTT) players and mobile network operators (MNOs).

Our conclusion of the IPO was - Fresh issue objects do not appear convincing, as the company is not really in need of funds. It has cash and equivalents of Rs. 170 crore (on 30-6-20) and generated over Rs. 90 crore of cash profits in FY20. Thus the IPO looks structured, to make hay when the sun shines.

Popular Comments

No comment posted for this article.