Route Mobile is a leading Cloud Communication Platform provider, catering to enterprises, over-the-top (OTT) players and mobile network operators (MNO). Its portfolio comprises solutions in application-to-peer (A2P) / peer-to-application (P2A) / 2Way Messaging, RCS, OTT business messaging, voice, email, and omni-channel communication.
The Promoter Selling Shareholder- Rajdipkumar Gupta, Sandipkumar Gupta
Company’s operations are internally aligned into the following business
Enterprise: Provides cloud based communication platform to enterprises to enable digital communication through multiple channels;
Mobile Operator: offerings in this segment include SMS analytics, firewall, filtering, monetization and CPaaS and hubbing solutions; and
Business Process Outsourcing: provides a range of BPO services including client support, technical support, booking and collection services.
|Objects of the issue||· To Repayment or pre-payment, in full or part, of certain borrowings of Company;
· Acquisitions and other strategic initiatives;
· Purchase of office premises in Mumbai; and
· General corporate purpose
|Issue Size||Issue Size: – Rs. 600 Crore
Offer for Sale- Rs.360 crore
Fresh Issue- Rs.240 Crore
Rs.10 Per Equity Share
|Issue Price||Rs. 345 – Rs. 350|
|Bid Lot||40 shares|
|Issue Opens:||9th September 2020 – 11th September 2020|
|QIB||50% of Net Issue Offer|
|NIB||15% of Net Issue Offer|
|Retail||35% of Net Issue Offer|
|Shareholding Pattern||Pre- Issue||Post Issue|
|Promoters & Promoters Group||96.00%||66.33%|
|Public & Others||4.00%||33.67%|
Source: DRHP, EWAL Research
- Scalable Diversified and global client base across industries serviced locally
- Strong Robust business model and consistent financial track record
- Omni-channel cloud communication platform service provider with diversified service offerings for enterprises.
- The company has a number of clients on a pre-paid business model where the client pays upfront. In Fiscal 2018, 2019 and 2020, and in the 3 months ended June 30, 2020, 41.77%, 24.99%, 17.01% and 15.47% of its revenue from operations, respectively, was prepaid.
- As of June 30, 2020, Route Mobile has serviced over 30,150 clients, cumulatively since inception, across sectors including social media, banking and financial services, aviation, retail, internet/e-commerce etc.
- The company continuously tracks new technologies, industry segments and market trends in the mobile technology sector.
- MNO clients are subject to extensive government regulation of the telecommunications industry in India.
- The telecommunications industry is subject to rapid and significant changes in technology.
- Acquisition of 365squared subjects to significant business and operational risks.
Route Mobile provides Cloud-communication Platform as a Service (“CPaaS”) to enterprises, over-the-top (“OTT”) players and Mobile Network Operators (“MNOs”). The company operates through prepaid and postpaid business models with high operating margins and low-cost base. Its Total revenue increased at a CAGR of 37.61% from Rs. 504.95 crore in Fiscal 2018 to Rs. 956.25 crore in Fiscal 2020. Through strategic acquisitions, Route Mobile intends to increase the scale of its operations, access new clients and enter high-growth geographies in a cost-effective manner. There are no listed entities in India whose business portfolio is comparable with that of Route mobile business. At the higher end of the price band of Rs. 350, the stock is available at a PE multiple of 25x on FY20 EPS. Considering Good financial track record of company and futuristic business model we would recommend subscribe to this IPO.
DISCLOSURE IN PURSUANCE OF SECTION 19 OF SEBI (RA) REGULATION 2014
Elite Wealth Advisors Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Advisors Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as read more
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