Amongst the leading CPaaS providers, Route Mobile Limited to open
IPO on September 9, 2020
Initial public offering of up to [●] equity shares of face value ₹ 10 each of Route Mobile Limited (“Company”) (“Equity Shares”) for cash at a price of ₹ [●] per Equity Share including a premium of ₹ [●] per equity share (“Offer Price”), aggregating up to ₹ 600 crore (“Offer”). The Offer comprises a fresh issue of up to [●] Equity Shares aggregating up to ₹ 240 crore (“Fresh Issue”)
and an offer for sale of up to [●] Equity Shares aggregating up to ₹
360 crore by the selling shareholders being the promoters, including up
to [●] Equity Shares aggregating up to ₹ 180 crore by Sandipkumar Gupta
and up to [●] Equity Shares aggregating up to ₹ 180 crore by Rajdipkumar
Gupta (“Offer for Sale”). The Offer shall constitute up to [●] % of the fully diluted post-offer paid-up equity share capital of the Company.
· Minimum Bid lot is 40 Equity Shares and in multiples of 40 Equity Shares thereafter
· Price Band of ₹ 345 – ₹ 350 per Equity Share
· Offer opening date – September 9, 2020 and Offer closing date – September 11, 2020
· The
floor price is 34.5 times the face value of the Equity Shares and the
cap price is 35 times the face value of the Equity Shares.
Route
Mobile, among the leading Omnichannel Cloud Communication Service
Provider (CPaaS), to enterprises, over-the-top (“OTT”) players and
mobile network operators (“MNOs”), with a client base including world’s
largest and well known organizations across social media companies,
banking and financial services, aviation, retail, e-commerce, logistics,
healthcare, hospitality, telecom sector; will be opening its initial
public offering on September 9, 2020 and will close on September 11,
2020, with a price band of ₹ 345 – ₹ 350 per Equity Share. Bids by
anchor investors shall be submitted, and allocation to them be will be
completed, on September 8, 2020, being one working day prior to the
Offer opening date.
The
Offer is being made through the Book Building Process, in terms of Rule
19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as
amended (“SCRR”) read with Regulation 31 of the SEBI ICDR Regulations
and in compliance with Regulation 6(1) of the SEBI ICDR Regulations,
wherein not more than 50% of the Offer shall be allotted on a
proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB
Portion”), provided that the Company and the Selling Shareholders in
consultation with the BRLMs may allocate up to 60% of the QIB Portion to
Anchor Investors on a discretionary basis (“Anchor Investor Portion”).
One-third of the Anchor Investor Portion shall be reserved for domestic
Mutual Funds, subject to valid Bids being received from the domestic
Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the
Net QIB Portion (excluding the Anchor Investor Portion) shall be
available for allocation on a proportionate basis to Mutual Funds only,
and the remainder of the QIB Portion shall be available for allocation
on a proportionate basis to all QIBs (other than Anchor Investors),
including Mutual Funds, subject to valid Bids being received at or above
the Offer Price. Further, not less than 15% of the Offer shall be
available for allocation on a proportionate basis to Non-Institutional
Bidders and not less than 35% of the Offer shall be available for
allocation to Retail Individual Bidders in accordance with the SEBI ICDR
Regulations, subject to valid Bids being received from them at or above
the Offer Price. All potential Bidders (except Anchor Investors) are
required to mandatorily utilise the Application Supported by Blocked
Amount (“ASBA”) process providing details of their respective ASBA
accounts, and UPI ID (in case of RIBs) if applicable, in which the
corresponding Bid Amounts will be blocked by the SCSBs or under the UPI
Mechanism, as applicable. Anchor Investors are not permitted to
participate in the Offer through the ASBA process.
Incorporated
in 2004, the Company has served more than 30,150 clients since its
inception, as of June 30, 2020. The Company has been ranked 2nd Globally as a tier 1 application-to-peer service provider and 1st
for value added services amongst tier 1 vendors as per the “A2P SMS
Messaging Vendor Performance Report 2017” dated June 2017 prepared and
issued by Roaming Consulting Company Limited. The business verticals of
the company include Enterprises, Mobile Operator, and Business Process
Outsourcing for clients across Africa, Asia Pacific, Europe, Middle East
and North America.
The
company operates through prepaid and postpaid business models with high
operating margins and low cost base. The indigenously developed CPaaS
platform is scalable with limited capital expenditure requirements. In
FY 20, Route Mobile processed more than 30.31 billion billable
transactions and three months ended 2020, it processed more than 6.95
billion billable transactions.
The
Company generated revenue from operations - ₹ 504.9 crore, ₹ 844.6
crore, ₹ 9,56.2 crore and ₹ 309.6 crore in fiscal 2018, 2019 and 2020,
and in the three months ended June 30, 2020, respectively.
The
Company proposes to utilize the Net Proceeds towards funding for
repayment or pre-payment, in full or part, of certain borrowings of the
Company; acquisitions and other strategic initiatives; purchase of
office premises in Mumbai; and general corporate purposes.
ICICI
Securities Limited, Axis Capital Limited, Edelweiss Financial Services
Limited and IDBI Capital Markets & Securities Limited have been
appointed as the book running lead managers to the Offer and KFin
Technologies Private Limited is appointed as the Registrar to the Offer.
The Equity Shares offered through the RHP are proposed to be listed on
National Stock Exchange of India Limited (“NSE”) and BSE Limited
(“BSE”).
