Route Mobile IPO: Issue subscribed 42% on Day 1 so far

The initial public offering (IPO) of Route Mobile has been subscribed 42 per cent so far on the first day of bidding (Wednesday). The cloud communication platform service provider received bids for 41.16 lakh equity shares against the offer size of over 1.21 crore equity shares. The retail investors' portion has been subscribed 83 per cent, according to the exchange data. The portion reserved for non-institutional investors has been subscribed 0.05 per cent. The qualified institutional buyers are still to come up with the bids.

The company garnered Rs 180 crore from 15 anchor investors ahead of its initial share-sale offer. Goldman Sachs, Franklin Templeton Mutual Fund, SBI Life Insurance, Kuwait Investment Authority, Vantage Equity Fund, Axis Mutual Fund, Macquarie and SBI Mutual Fund are among the anchor investors.

The company proposes to raise Rs 600 crore through the public issue, which comprises a fresh issue of shares worth Rs 240 crore and an offer for sale (OFS) of Rs 360 crore by promoters (Y Sandipkumar Gupta and Rajdipkumar Gupta). A price band of Rs 345-350 apiece per share has been fixed for the IPO that concludes on September 11.

The company proposes to utilise the net proceeds towards funding for repayment or pre-payment, in full or part, of certain borrowings of the company; acquisitions and other strategic initiatives; purchase of office premises in Mumbai; and general corporate purposes. ICICI Securities, Axis Capital, Edelweiss Financial Services and IDBI Capital Markets and Securities are the managers to the issue.

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