Route Mobile IPO opened on September 9 i.e. this morning and by the end of the day, they fully subscribed the entire subscription. The company had fixed a price band of Rs 345–350 per share for the IPO. Investors had to apply for at least 40 shares at one time.
Route Mobile IPO opened this morning, and by the end of the day, it subscribed 100 percent. By the time the IPO opened, by 12 noon, 34 percent had subscribed. Under the IPO, the company had offered 1.21 crore equity shares. Root Mobile’s IPO received a good response from retail investors. The company had set a target of raising Rs 600 crore through an IPO. The value of the promoter’s share in this is Rs 360 crore. The company had issued new shares worth Rs 240 crore.
Route Mobile had kept the price band at Rs 345-350 per share.
For the IPO, the company had fixed a price band of Rs 345–350 per share. The lot size was kept for 40 shares. In simple words, an investor had to apply for at least 40 shares. The company had said that the IPO will open on September 9 and will close on September 11. After this issue, the promoters’ stake in the company will fall from 96 percent to 66 percent. The company will use the proceeds from this issue to pay off debt, buy assets, and make strategic acquisitions.
The company’s growth rate is increasing year after year
Root Mobile was started in 2004. The company primarily serves as an omnichannel cloud communication service for OTT and mobile network operators. The company has a large customer base in the world’s largest social media companies, banking, and financial services, aviation, retail, e-commerce, logistics, health, hospitality, and telecom sectors. The company’s revenue stood at Rs 309.6 crore for the quarter ended June 30. This figure was Rs 956.2 crore for the financial year 2019-20. During the financial year 2017-18 to 2019-20, the company’s revenue reached Rs 956.3 crore with a growth of 37.6 percent.
IPO is good for investors with high risk appetite
The company’s net profit has risen by 21.6 percent to Rs 69.1. During the last 2 years, the growth rate of root mobiles has been quite good. Both profit and revenue saw spectacular growth. But some things can affect the long-term growth of the company. Communication is Its core business. Therefore, in this sector, the company will have to face tremendous competition from other big companies. Right now the liabilities of the company are also high. This may lead to working capital stress. This IPO is suitable for investors with high risk appetite. Whose risk potential is high.