Mumbai-headquartered cloud communication services provider Route Mobile share price closed with a stellar 86 percent premium on September 21, the first day of trading on bourses.
The listing and the closing prices are far ahead of Street expectations. The stock ended the first trading session at Rs 651.10 on the BSE, up 86.03 percent, with volumes of 27.26 lakh shares.
On the National Stock Exchange, it closed with 86.09 percent gains at Rs 651.30 and traded volume was over 2.91 crore equity shares.
After opening at Rs 708 on the BSE and Rs 717 on the NSE, the stock touched an intraday high of Rs 735 and low of Rs 625 on both exchanges.
"Market is keen to look out for companies in the technology space with presence across countries and Route Mobile offers this opportunity with strong business model and unique service offering. The issue got strong response in the IPO with massive subscription at 73.3 times and at the listing price there is significant wealth creation for retail investors and promoters," Hemang Jani, Head - Equity Strategy, Broking & Distribution at Motilal Oswal Financial Services told Moneycontrol.
Route Mobile, a leading cloud communication platform provider to enterprises, over-the-top (OTT) players and mobile network operators (MNO), has raised Rs 600 crore via public issue which consisted a fresh issue of Rs 240 crore and an offer for sale of Rs 360 crore by promoters.
The fresh issue proceeds will be utilised for repayment of certain loans, acquisitions and other strategic initiatives, purchase of office premises in the Mumbai region and general corporate purposes.
Route Mobile's product portfolio includes smart solutions in messaging, voice, email and SMS filtering, analytics and monetization. Company has served over 30,150 clients, since inception and has access to over 800 networks across the globe, over 255 direct connections to telecom operators and over 3,000 active monthly billable clients.
During FY18-20, company reported a 38 percent CAGR in revenue due to its association with marquee clients while the PAT reported a 22 percent CAGR.Company earned close to 85 percent of revenue is generated from export markets like Africa, Europe, Middle East and North America. Company uses a prepaid business model where client pays upfront helping in reduced overall working capital cycle.