ROUTE MOBILE IPO : Subscribe or Not ???

ROUTE MOBILE IPO : Everything you need to know before subscribing

About The Company

- The company was Incorporated in 2004 in mumbai.

- It is among the leading Communications Platform as a Service (CPaaS) provider and a tier-one application-to-peer (A2P) service provider. 

- Its enterprise communication services include new age solutions in Messaging, Voice, Email, and SMS Filtering, Analytics & Monetization.

The company operates in 3 business verticals:

1. Enterprise: The Company provides a cloud-communication platform as a service to enterprises, over-the-top players, and mobile network operators around the world.

2. Mobile Operator: Services in this segment include SMS analytics, firewall, filtering, monetization, and hubbing solutions.

3. Business Process Outsourcing (BPO): The Company provides a range of BPO services including client support, technical support, booking, and collection services.

The company's clients include some of the world's largest organizations, including several Fortune Global 500 companies.


Key Facts (As of June 2020)

1.  As of now there are over 300 Employees in the company.

2. Business spread across Africa, Asia Pacific, Europe, the Middle East, and North America.

3. Till date it has Served 30150+ clients globally.

4. It has recorded 2.5+ Billion Messages per month in fiscal 2020

5.  There has been 31+ Billion Billable transactions in fiscal 2020


Competitive Strengths

- Omni-channel cloud communication platform service provider with diversified service offerings for enterprises.

- Global connectivity through established relationships with mobile network operators.

- Diversified and global client base across industries serviced locally.

- Scalable delivery platform supported by robust infrastructure.

- Robust business model and consistent financial track record.


Who Owns the Company ??

- Chandrakant Gupta is the Chairman and Non-executive Director, while Rajdipkumar Gupta is Managing Director and Group Chief Executive Officer of the company.



Route Mobile IPO Details

Financial Performance




Route Mobile IPO Offer Size by Investor Category

The Percentage of Offer Size available for Allotment/allocation:

  • QIBs: 50% (₹300 Cr)
  • Non-Institutional Investors: 15% (₹90 Cr)
  • Retail Individual Investors: 35% (₹210 Cr)

Objectives of Public Issue

- Repayment or pre-payment of certain borrowings.

- Acquisitions and other strategic initiatives. 

- Purchase of office premises in Mumbai. 

- General corporate purposes.


Key Risks 

- Inability to maintain relationships or enter fresh pacts with mobile network operators. 

- Employee attrition. 

- Forex fluctuations. 

- Greater dependency on 3rd parties mobile network operations.

- Revenues depend on a limited number of clients.


Fundamental Factors

- Till date the CAGR is approximately 15% .

- The PB ratio is close to 7.

- The PE Ratio is approximately equal to 27.


Personal Opinion

- Good to apply for the listing gains.

- No Long term view suggested.

- Little risky as Compared to Happiest Mind IPO. 

This is our personal Opinion and personally we will be buying one lot in this issue.

Dos & Don'ts

- Apply only one lot as the IPO is going to be oversubscribed and even if you apply 10 lots you will be alloted only 1 lot at listing.

- Do not apply from different Demat accounts linked with same PAN Details, your subscription will likely get rejected.

- You can apply from different Demat accounts linked with different PAN e.g from your family members account so as to get more chances of allotment

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