Additionally, a pre-IPO placement aggregating up to Rs 100 crore may be considered in consultation with the book running lead managers (BRLMs), which will reduce the size of the offer.
Omnichannel cloud communications services provider Route Mobile has received the approval of markets regulator Sebi to raise an estimated Rs 600 crore through an initial public offering (IPO). The company had initially filed for its IPO in January 2018. It refiled its document on October 3, 2019. The company was issued the final observations by Sebi on December 24, 2019, according to the information on its website.
According to the draft red herring prospectus filed by the company, the offer comprises a fresh issue worth Rs 240 crore and an offer for sale (OFS) of Rs 360 crore by promoters Y Sandipkumar Gupta and Rajdipkumar Gupta. Additionally, a pre-IPO placement aggregating up to Rs 100 crore may be considered in consultation with the book running lead managers (BRLMs), which will reduce the size of the offer.
ICICI Securities, Axis Capital, Edelweiss Financial Services, IDBI Capital Markets & Securities are the BRLMs to the issue. The company will use Rs 36.9 crore towards repayment and advance payment of certain borrowings, Rs 83 crore for acquisitions and other strategic initiatives besides purchasing an office.
According to the management, “The company has serviced more than 27,500 clients across sectors including BFSI, aviation, retail, e-commerce, logistics, healthcare, hospitality, media and entertainment, pharmaceuticals and telecom. Its total revenenue increased at a CAGR of 37.87%, from Rs 4,575 million in FY17 to Rs 8,446.68 million in FY 2019.”