Route Mobile IPO

Route Mobile IPO Details

Route Mobile Ltd. is an omnichannel cloud communication provider based in 18+ locations worldwide. With an MNO focused suite of products, they also cater to large scale enterprises and OTT Players with their diversified offerings. Route Mobile Ltd. plans on raising Rs. 6,000mn with this IPO.

• The IPO Issue is a combination of Fresh (Rs. 2,400mn) and Offer for Sale (Rs. 3,600mn).
• The total Issue Size is 17.143 - 17.391mn shares (Rs.6,000mn).
• The issue is through a book-building process with the price band of Rs. 345 - Rs. 350 per share.
• The offer represents around 30.15% of its post issue paid-up equity shares of the company.

Route Mobile IPO Review/Ratings

1. RML’s leadership position as a cloud-communication service provider is supported by its global operations spanning across 18 locations worldwide (Africa, Asia Pacific, Europe, the Middle East and North America).
2. Since inception, its enterprise client-base has increasingly grown from over 16,000 clients in FY15 to 26,700+ clients in FY20 and gradually 30,150+ clients in Q1 FY21.
3. A diverse global client base helps limit its dependency on a specific client, industry or geography; thereby reducing the operating and financial risk. Over FY18-20, the company generated an average of 82.5% of the revenue from global operations and the rest from domestic operations.
4. A cause of concern, however, would be the subdued economic growth, lowered product demand as well as intense competition.
5. Peer comparison and valuation: There are no listed peers, whose business operations are comparable to RML. At the higher price band of Rs. 350 per share, RML’s share is valued at a P/E multiple of 28.8x (to its restated FY20 EPS of Rs. 12.2).

Download the Route Mobile IPO Report

Route Mobile IPO Fundamental Analysis

• 23.62% increase in Net Profit; from 559.5 mn in FY 19 to 691.7 mn in FY 20.
• 13.2% increase in revenue from operations; from 8446.7 mn in FY 19 to 9562.5mn in FY 20.
• Promoter stake to reduce from 96% to 66.33% with an increase in the public stake from 4% to 33.67%.
• Price to Earnings Ratio (P/E) for FY 20 = 28.8
• Price to Book Ratio (P/B) for FY 20 = 3.9
• Debt to Equity Ratio (D/E) for FY 20 = 0.1
• Return on Equity (ROE) for FY 20 = 13.6%
• Return on Assets (ROA) for FY 20= 11.0%

Online Procedure to Apply For Route Mobile IPO

1. Go to the IPO Section => IPO Listing => Open IPO.
2. On tapping Route Mobile IPO, you can directly click on Subscribe to apply or even view the IPO details.
3. On the Subscribe Screen/Page, you will be required to enter the number of lots, cut-off price, UPI ID and tap Verify.
4. Once you select 'Subscribe'. Your bid will be executed.
5. You can check the status of your IPO bid in the IPO Transactions section.