Skip to main content

Route Mobile to list on bourses on September 21: here's what to expect

The cloud communication services provider will list on bourses on September 21 and the final issue price is fixed at Rs 350 per share.

After a strong debut of Happiest Minds Technologies, Route Mobile is also expected to witness stellar listing in the coming week given the strong financials and management, market leadership in cloud-communication, expected solid growth in digitalisation and hefty subscription.

The cloud communication services provider will list on bourses on September 21 and the final issue price has been fixed at Rs 350 per share.

Experts feel the listing premium could be in the range of 55-70 percent, i.e. Rs 550-600 per share against issue price and are bullish on prospects of the company citing rapid increase in digitalisation post COVID-19.


Route Mobile was trading with a premium of more than Rs 200 per share in the grey market against final IPO price.

"We believe there is a high probability of yet another bumper listing in the range of Rs 550-600 levels which translates 57-71 percent gain on allotment price (Rs 350)," Prashanth Tapse, AVP Research at Mehta Equities told Moneycontrol.

He is optimistic on Route Mobile's growth story considering its leading position in cloud-communication, OTT segment and MNOs space.

Route Mobile does not have a directly comparable listed peer in India. The company will become the second only firm in the larger mobile communication services after Affle India which trades at PE 100x.

"Company has deepened relations with MNOs and has broadened product and service portfolio over the years through strategic acquisitions. Being the only listed peer in this space, stock would gain prominence. Thus, we expect the listing to pop up in the range of Rs 550-580 which is at a premium of around 57-65 percent to the issue price," Manali Bhatia, Head-Research at Rudra Shares & Stock Brokers said.

Astha Jain, Senior Research analyst at Hem Securities expects the listing price at around Rs 560, i.e. 60 percent premium over IPO price, while Gaurav Garg, Head of Research at CapitalVia Global Research feels Route Mobile may open at Rs 600 on the listing day.

Garg believes the sector is very promising, as with growing technology and almost every industry becoming an IT enabled enterprise, there is a good potential for this stock as the sector has not yet saturated and is still in a growing stage. Thus a great potential for growth can be harnessed, he said.

Route Mobile, which provides cloud communication platform as a service (CPaaS) to enterprises, over-the-top (OTT) players and mobile network operators (MNOs), raised Rs 600 crore via public issue during September 9-11.

The IPO, which was subscribed 73.3 times, comprised a fresh issue of Rs 240 crore and offer for sale of Rs 360 crore by promoters Sandipkumar Gupta and Rajdipkumar Gupta. The company will utilise fresh issue proceeds for repayment of certain loans, acquisitions and other strategic initiatives, purchase of office premises in the Mumbai region and general corporate purposes.

Labels:

Comments

Post a Comment

Popular posts from this blog

Reliance Jio Q3 results: Profit grows to Rs 3,489 crore; ARPU rises to Rs 151

  The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. Reliance Jio, the telecommunications arm of Jio Platforms, on January 22 posted a net profit of Rs 3,489 crore for the quarter ended December 31, 2020. The profit was higher than the street expectations as analysts in a CNBC-TV18 poll had estimated the number at Rs 3,200 crore. Jio's net profit grew 15.5 percent QoQ as in the September quarter of FY21, its profit was Rs 3,020 crore. The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter. A CNBC-TV18 poll had estimated ARPU at Rs 148.2. Revenue, including access revenues for the quarter, was Rs 22,858 crore ($3.1 billion), up 5.3 percent QoQ. A CNBC-TV18 poll had estimated revenue to the tune of Rs 18,165 crore. EBITDA for the quarter stood at Rs 8,483 crore ...
Post a Comment
Read more

Futures Trade | A bullish breakout of a flag pattern in HDFC

HDFC is moving in an uptrend with a minor corrective decline. The range is classified as a flag and a breakout of falling minor trendline confirms a possible upside. HDFC is moving in an uptrend with a minor corrective decline from Nov 20 highs. The decline is on lower, contracting volumes and suggests a correction within an ongoing trend. The range-bound action can also be classified as a flag as it is on coming off a sharp rally. A breakout of falling minor trendline confirms a possible upside. Buy around Rs 2300-2310. Keep a stop below Rs 2250 and hold for a target of Rs 2400 and above that to Rs 2450.
Post a Comment
Read more

Taking Stock | Profit-booking pulls Nifty below 14,450; Sensex drops 549 points

  All the sectoral indices ended in the red with IT and PSU bank indices falling 2 percent each. The market remained under pressure on January 15 on the back of profit-booking across sectors amid weak global cues. At close, the Sensex was down 549.49 points or 1.11% at 49,034.67, and Nifty was down 161.90 points or 1.11% at 14,433.70. "The market witnessed profit-booking and following global trends. Nifty continues to resist 14,600 and has taken a dip towards 14,360. If the market closes below 14,380 levels, we might see a correction till the levels of 14,180-14,200. Momentum indicators like RSI, MACD are indicating a small correction in the markets," said Ashis Biswas, Head of Research at CapitalVia Global Research. All the sectoral indices ended in the red with IT and PSU bank falling 2 percent each. Broader markets performed in line with the main indices with BSE Midcap and Smallcap indices falling 1 percent each. Tech Mahindra, GAIL, HCL Tech, Wipro and ONGC...
Post a Comment
Read more