Moneycontrol News
Route Mobile, one of the leading cloud-communication platform service providers, has filed its draft red herring prospectus (DRHP) with SEBI seeking permission for its initial public offering (IPO).
The IPO comprises a fresh issue of up Rs 350 crore and an offer for sale of upto 65 lakh shares by promoters Sandipkumar Gupta and Rajdipkumar Gupta.
The net proceeds from the Issue would be utilised towards investment in Route Mobile (UK) Limited for repayment / prepayment of the loan; repayment or pre-payment of certain existing loan facilities; and acquisitions and other strategic initiatives.
Sources told Moneycontrol that the company is expected to raise around around Rs 600 crore through IPO.
The company will also use issue proceeds for investment in subsidiaries for purchase of office premises in London and Singapore; purchase of business process outsourcing centre in Noida and general corporate purposes.
Incorporated in 2004, Route Mobile provides a range of services which include messaging, voice, email and SMS filtering, analytics and monetisation.
As of December 2017, the company has over 23,000 clients. Its global operations included eight direct and seven step-down subsidiaries serving clients through 15 locations across Africa, Asia Pacific, Europe, Middle East and North America.
For the fiscal year 2016-17, revenue from operations stood at Rs 463.1 crore and profit after tax at Rs 60.63 crore.
Motilal Oswal Investment Advisors Limited, IDBI Capital Markets & Securities Limited and YES Securities (India) Limited are the book running lead managers to the issue.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
