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

Panacea Biotech shares hit 5% upper circuit after dengue vaccine completes phase I & II study

DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes, the company has said in an exchange filing. Panacea Biotech share price hit 5 percent upper circuit on the BSE on September 24 after the company completed phases I and II study of its dengue vaccine candidate DengiAIl. "Panacea Biotec Ltd. is delighted to announce the successful completion of its Phase I/II study to evaluate the safety and immunogenicity of its vaccine, DengiAll, a single-dose liveattenuated tetravalent vaccine," the company said in an exchange filing. Live-attenuated vaccines contain weakened bacteria or viruses that trigger an immune response but do not cause disease. The company said DengiAIl induced robust neutralising antibody responses against all the four dengue virus serotypes. DengiAIl has been found to be safe and well-tolerated with no serious adverse effects, the company said. After a single-dose, more than 80 percent of the participants ...
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

Similar to 2020, D-Street is at record high ahead of Budget 2021; will history repeat itself?

  Experts are of the view that a repeat of 2020 or what happened in March might not be possible but some consolidation cannot be ruled out. Back in March when everyone wanted to write-off 2020 from their books, hope and liquidity supported markets and investor sentiment. Nobody thought that after touching a 3-year low in March 2020, benchmark indices would give double-digit returns by the end of the year. The S&P BSE Sensex and Nifty50 rallied by about 15 percent in 2020 and the big outperformance came from the small and midcap stocks. The rally is still continuing in 2021. The S&P BSE Sensex, which climbed Mount 49K, is up over 3 percent while the Nifty50 is up over 4 percent so far in January. Sensex scaling the 49,000-mark and Nifty50 touching 14,500 levels ahead of the Budget 2021 could make anyone cautious about the strength of the rally. Back in January 2020, both Sensex and Nifty touched fresh highs ahead of Budget, and then the market fell like a pack of cards. The ...
Post a Comment
Read more