Incorporated in 2004, Route Mobile Limited is among the leading Communications Platform as a Service (CPaaS) provider and a tier-one application-to-peer (A2P) service provider. Its enterprise communication services include new age solutions in Messaging, Voice, Email, and SMS Filtering, Analytics & Monetization.
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The company operates in 3 business verticals:
1. Enterprise: The Company provides a cloud-communication platform as a service to enterprises, over-the-top players, and mobile network operators around the world.
2. Mobile Operator: Services in this segment include SMS analytics, firewall, filtering, monetization, and hubbing solutions.
3. Business Process Outsourcing (BPO): The Company provides a range of BPO services including client support, technical support, booking, and collection services.
The company’s clients include some of the world’s largest organizations, including several Fortune Global 500 companies.
Key Facts (As of June 2020):
– 318 Employees
– 18 locations across Africa, Asia Pacific, Europe, the Middle East, and North America.
– Served 30150+ clients globally
– 2.5+ Billion Messages per month in fiscal 2020
– 31+ Billion Billable transactions in fiscal 2020
– 800+ Network Operators
– 240+ Direct Connections or “Super Networks”
– 6 Strategically Located Data Centers.
– 4 Short Message Service CentersCompetitive Strengths
1. Leading cloud communications service provider offering CPaaS.
2. Omnichannel Platform for easy campaign scheduling and reporting.
3. Easy to use the console to plan, deploy & monitor campaigns.
4. Global & Local customization expertise.
5. Consultative and Lean approach for better customer engagement.
Company Promoters:
Sandipkumar Gupta and Rajdipkumar Gupta are the promoters of the company.
Company Financials:
| Particulars | For the year/period ended (₹ in Million) | ||||
|---|---|---|---|---|---|
| 30-June-20 | 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | ||
| Total Assets | 6,348.31 | 6,265.48 | 5,057.81 | 4,473.66 | |
| Total Revenue | 3,122.95 | 9,681.02 | 8,523.77 | 5,094.85 | |
| Profit After Tax | 269.34 | 691.02 | 545.32 | 466.77 | |
Objects of the Issue:
The company proposes to utilise the Net Proceeds towards funding the following objects:
1. Repayment or pre-payment, in full or part, of certain borrowings of our Company;
2. Acquisitions and other strategic initiatives;
3. Purchase of office premises in Mumbai; and
4. General corporate purposes.
Route Mobile IPO Details
| IPO Date | Sep 9, 2020 – Sep 11, 2020 |
| Issue Type | Book Built Issue IPO |
| Issue Size | [.] Eq Shares of ₹10 (aggregating up to ₹600.00 Cr) |
| Fresh Issue | [.] Eq Shares of ₹10 (aggregating up to ₹240.00 Cr) |
| Offer for Sale | [.] Eq Shares of ₹10 (aggregating up to ₹360.00 Cr) |
| Face Value | ₹10 per equity share |
| IPO Price | ₹345 to ₹350 per equity share |
| Market Lot | 40 Shares |
| Min Order Quantity | 40 Shares |
| Listing At | BSE, NSE |
Route Mobile IPO Tentative Date / Timetable
| Bid/Offer Opens On | Sep 9, 2020 |
| Bid/Offer Closes On | Sep 11, 2020 |
| Finalisation of Basis of Allotment | Sep 16, 2020 |
| Initiation of Refunds | Sep 17, 2020 |
| Credit of Shares to Demat Acct | Sep 18, 2020 |
| IPO Shares Listing Date | Sep 21, 2020 |
Route Mobile IPO Lot Size and Price (Retail)
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 40 | ₹14,000 |
| Maximum | 14 | 560 | ₹196,000 |
Route Mobile IPO Promoter Holding
| Pre Issue Share Holding | 96% |
| Post Issue Share Holding | 66.33% |
Route Mobile IPO Offer Size by Investor Category
The Percentage of Offer Size available for Allotment/allocation:
- QIBs: 50% (₹300 Cr)
- Non-Institutional Investors: 15% (₹90 Cr)
- Retail Individual Investors: 35% (₹210 Cr)
Risks to Investors in Route Mobile IPO
- Operate in a highly evolving market.
- Greater dependency on 3rd parties mobile network operations.
- Revenues depend on a limited number of clients.
- Rely on 3rd party technology systems and infrastructure to provide services and solutions to clients.
- The risk from potential claims resulting from the client’s misuse of its platform to send unauthorized text messages in violation of TRAI regulations.