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Route Mobile gets SEBI go-ahead for ₹600-cr IPO

PTI Route Mobile gets Sebi nod for ?600 cr IPO New Delhi | Updated on August 20, 2018 Published on August 20, 2018

Public float comprises fresh issue, OFS

Route Mobile has received market regulator SEBI’s approval to raise an estimated ₹600 crore through an initial public offering.

Incorporated in 2004, Route is a leading cloud communication platform service provider to enterprises, over-the-top players and mobile network operators.

The company had filed draft papers with SEBI in January and received its “observations” on August 16, according to the latest update with the regulator.

SEBI’s “observations” are necessary for any company to launch a public issue like IPO, follow-on public offer (FPO) and rights issue.

The IPO comprises a fresh issue of shares worth ₹350 crore and an offer-for-sale of up to 65 lakh shares by founders Sandipkumar Gupta and Rajdipkumar Gupta, according to draft papers filed with SEBI.

Utilisation of funds

Funds raised through the public issue will be used towards investment in Route Mobile (UK) for payment of the loan availed from Deutsche Bank AG as well as for acquisitions and other strategic initiatives.

The proceeds will also be used for investment in subsidiaries for purchase of office premises in London and Singapore, purchase of business process outsourcing centre in Noida and for other general corporate purposes.

According to merchant banking sources, the IPO aims to raise ₹600 crore, and the offering will value Route Mobile at around ₹2,500 crore.

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Published on August 20, 2018
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