Route Mobile makes strong debut at exchanges, lists at 105% premium over issue price – Times of India

NEW DELHI: Route Mobile made a solid stock market debut on Monday as the scrip got listed at Rs 717, a 104.86 per cent premium over its issue price of Rs 350 on the NSE index. Meanwhile, on BSE it listed at Rs 708, a premium of 102.29 per cent.
The cloud communications service provider’s initial public offer (IPO) was subscribed 74.36 times on the last day of bidding (September 11), reflecting huge investor appetite for the issue.
The Rs 600-crore public offer of Route Mobile received bids for over 89 crore shares as against the total issue size of 1.21 crore shares.

Qualified institutional buyers (QIBs) category was subscribed 91 times, non-institutional investors category 195.61 times and retail individual investors portion was subscribed 12.85 times, according to merchant bankers.
The IPO comprises of fresh issue of Rs 240 crore and an offer for sale of Rs 360 crore. Price range for the offer was Rs 345-350 per share.
Route Mobile had garnered Rs 180 crore from anchor investors.
The company proposes to utilise the net proceeds 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, Axis Capital, Edelweiss Financial Services and IDBI Capital Markets and Securities are the managers to the offer.
Last week, Happiest Minds Technologies Ltd also had a steller debut at the bourses. The stock of the IT services firm got listed at Rs 351 apiece, up 111.44 per cent from the issue price (Rs 165-166) on BSE.

(With PTI inputs)