Choice Equity Broking has come out with its report on Route Mobile. The research firm has recommended to ''Subscribe'' the ipo in its research report as on September 07, 2020
Choice Equity Broking's IPO report on Route Mobile
Cloud communications service provider, Route Mobile Ltd. (RML), is planning to raise up to Rs. 6,000mn through an IPO, which will open on 09th Sept. and close on 11th Sept. 2020. The price band is Rs. 345 - 350 per share. The issue is a combination of fresh (Rs. 2,400mn) and OFS (Rs. 3,600mn). The company will not receive any proceeds from the OFS portion. Of the net proceeds from the fresh issue, Rs. 365mn will be utilized towards repayment or prepayment in part or in full of the existing loan facilities availed by the company; Rs. 830mn will be used for acquisitions & other strategic investments and Rs. 650mn will be used in purchasing an office premises in Mumbai. Rest of the amount will be utilized for general corporate purposes.
Valuation and Outlook
RML has certain business moat like scale, collaboration with MNOs etc., which may act as an entry barrier for a new player. Considering the above observations, we assign a “SUBSCRIBE” rating for the issue.
For all IPO stories, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.