Route Mobile IPO Fully subscribed on Day 1!

Happiest Minds Technologies IPO subscribed 8.4 times in 2 days with still a day to go!. Out of which the Retail Quota was subscribed a whopping 39 times!

After the thumping IPO of Happiest Minds, it’s time for Route Mobile Limited. Route Mobile IPO opened today with a price band of ₹345-350 & a minimum lot size of 40 shares.

The issue was fully subscribed on day one. The IPO has received bids for 1.22 crore equity shares against the offered size of over 1.21 crore equity shares!. The Rs 600-crore public issue consists of a fresh issue of Rs 240 crore and an offer for sale of Rs 360 crore by promoters – Sandipkumar Gupta and Rajdipkumar Gupta

So what does the company do?

• Market Leader of fast growing cloud communication segment, Route Mobile provides services to Large Enterprises, OTT Platforms & Mobile network operators.

They specialise in omni-channel communication, SMS analytics & SMS hubbing. Owing to the fast digital penetration in India, Route Mobile surely has a good market to cater.

Route Mobile in 2020 :

• Revenues: ~₹968 Cr (CAGR 27%)
• Profit: ₹58 Cr (₹61Cr in 2016)
• Debt: ~₹3.7 Cr

Their revenues are increasing consistently however profits have declined over the years. A major factor for this could be because the majority of the revenues are again reinvested in the business.

Note : Their Top 10 clients account for more than 60% of the revenues.

• The Market is Huge, but so is the Competition. Since there is a huge scope in the industry, everyone wants a piece of the pie. So does Mukesh Ambani. RIL acquired a majority stake in AI platform Haptik for ₹700 Cr in 2019.

Plivo, Sinch, Avaya there are MANY players in the market. Can Route Mobile open with a bang?