Route Mobile
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 09 Sep 2020 – 11 Sep 2020
- Listing date
- 21 Sep 2020
- Face value
- ₹10 per share
- Issue price
- ₹350 per share
- Lot size
- 40 shares
- Total issue size
- ₹600 Cr
- Promoter holding
- 96.00% → 66.33% pre-issue → post-issue
- ISIN
- INE450U01017
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Axis Capital Ltd.
- Registered office
- 4th Dimension, 3rd Floor, Mind Space, Malad (West), Mumbai 400 064, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 51,42,856 | — | — |
Application size
Minimum 40 shares per lot, in multiples, at ₹350
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 40 | ₹14,000 |
| Retail (max) | 14 | 560 | ₹1,96,000 |
| S-HNI (min) | 15 | 600 | ₹2,10,000 |
| S-HNI (max) | 71 | 2,840 | ₹9,94,000 |
| B-HNI (min) | 72 | 2,880 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|
About Route Mobile
Route Mobile Limited was incorporated as 'Routesms Solutions Private Limited' on May 14, 2004 at Mumbai, Maharashtra, and converted to a public limited company on April 17, 2007. The company was renamed 'Route Mobile Limited' on March 16, 2016. It provides cloud-communication platform as a service (CPaaS) to enterprises, over-the-top (OTT) players and mobile network operators (MNOs). The company's range of enterprise communication services include A2P / P2A / 2Way Messaging, Rich Communication Services (RCS), OTT business messaging, voice, email, and omni-channel communication. It also offers SMS analytics, firewall, filtering and monetization, SMS hubbing and Instant Virtual Number (IVN) solutions to MNOs across the globe. As of June 30, 2020, the company had direct relationships with over 240 MNOs and provided enterprise clients with access to over 800 mobile networks. In Fiscal 2018, 2019 and 2020, approximately 80.09%, 82.96% and 80.81% of the company's revenue from operations was derived from sales outside of India.
Company Analysis
from RHPRoute Mobile Limited provides cloud-communication platform as a service (CPaaS) to enterprises, over-the-top players, and mobile network operators, spanning A2P messaging, RCS, voice, email, and omni-channel communication services globally.
Route Mobile Limited was incorporated as 'Routesms Solutions Private Limited' on May 14, 2004 at Mumbai, Maharashtra, and converted to a public limited company on April 17, 2007. The company was renamed 'Route Mobile Limited' on March 16, 2016. It provides cloud-communication platform as a service (CPaaS) to enterprises, over-the-top (OTT) players and mobile network operators (MNOs). The company's range of enterprise communication services include A2P / P2A / 2Way Messaging, Rich Communication Services (RCS), OTT business messaging, voice, email, and omni-channel communication. It also offers SMS analytics, firewall, filtering and monetization, SMS hubbing and Instant Virtual Number (IVN) solutions to MNOs across the globe. As of June 30, 2020, the company had direct relationships with over 240 MNOs and provided enterprise clients with access to over 800 mobile networks. In Fiscal 2018, 2019 and 2020, approximately 80.09%, 82.96% and 80.81% of the company's revenue from operations was derived from sales outside of India.
Objects of the Issue
- Repayment or pre-payment, in full or part, of certain borrowings of our Company ₹ 365.00 million p.22
- Acquisitions and other strategic initiatives ₹ 830.00 million p.22
- Purchase of office premises in Mumbai ₹ 650.00 million p.22
- General corporate purposes ₹ 385.91 million p.22
- Repayment or pre-payment, in full or part, of certain borrowings of our Company ₹365.00 million p.90
- Acquisitions and other strategic initiatives ₹830.00 million p.93
- Purchase of office premises in Mumbai ₹650.00 million p.94
- General corporate purposes ₹385.91 million p.94
Issue Structure
- Total Issue
- ₹ 6,000.00 million
- Fresh Issue
- ₹ 2,400.00 million (6,857,142 Equity Shares)
- Offer for Sale
- ₹ 3,600.00 million (10,285,714 Equity Shares)
- Price Band
- ₹ 345.00 - ₹ 350.00 per Equity Share
- Lot Size
- 40 Equity Shares and in multiples of 40 Equity Shares thereafter
- Face Value
- ₹ 10 per Equity Share
Business Model
Route Mobile generates revenue primarily through a dynamic pricing model based on per A2P message and per voice pulse basis. The company earns revenue from providing cloud-communication platform services to enterprises, OTT players and MNOs. Most agreements with enterprise clients do not provide for fixed or minimum recurring payments or traffic volumes, with revenue generated based on each transaction or communication processed through the cloud communication platform services.
Business Segments
SWOT Analysis
- • Extensive direct relationships with global MNOs providing broad network access(p.27)
- • Established global operations across multiple continents and geographies(p.37)
- • Strong revenue growth trajectory from acquisitions and organic expansion(p.37)
- • Diversified service offerings spanning multiple communication channels(p.21)
- • Significant profitability improvement over time(p.37)
- • Omni-channel cloud communication platform with diversified service offerings(p.98)
- • Global connectivity through established MNO relationships(p.98)
- • Diversified and global client base across industries(p.98)
- • Scalable delivery platform with robust infrastructure(p.98)
- • Consistent financial track record and robust business model(p.98)
- • Experienced promoter and senior management team(p.98)
- • Strong global subsidiary network with operations across multiple continents(p.225)
- • Experienced management with long tenure and industry expertise(p.184)
- • Long operating history and market presence(p.225)
- • Profitable operating performance with positive cash generation(p.220)
- • Substantial consolidated net assets and growing equity base(p.311)
- • Strong revenue growth from messaging and call center services(p.254)
- • Diversified international revenue base(p.254)
- • Negative net debt position indicating financial strength(p.264)
- • Tier-one A2P service provider ranking globally(p.337)
- • Extensive global MNO connectivity network(p.337)
- • Leading performance metrics across value-add services(p.337)
- • Large and diversified enterprise client base(p.338)
- • Scalable cloud-based platform architecture(p.342)
- • Strategic acquisitions expanding service portfolio(p.338)
- • High concentration of revenue from limited number of major clients(p.32)
- • Significant contingent liabilities not provided for in financial statements(p.31)
- • High employee attrition rates historically affecting operational continuity(p.47)
- • Pending trademark registration limiting legal protection of brand(p.40)
- • Material audit matters of emphasis relating to regulatory compliance delays(p.40)
- • Subsidiary financial underperformance creates investment risk(p.49)
- • Unsecured loans held by promoters and group companies callable at any time(p.50)
- • Key managerial personnel lack documentation for past experience/educational qualifications(p.49)
- • Foreign exchange regulatory compliance delays creating exposure to penalties(p.211)
- • Pending service tax dispute with material exposure(p.211)
- • Concentration of ownership among promoters affecting governance(p.198)
- • Multiple loss-making group companies requiring capital support(p.205)
- • Dependence on related party purchases for messaging services(p.271)
- • Significant director personal guarantees on borrowings(p.253)
- • Delay in settlement of foreign currency payables to subsidiaries(p.267)
- • Contingent tax liabilities from service tax disputes(p.268)
- • High dependence on limited customer base(p.370)
- • Significant contingent liabilities related to service tax disputes(p.368)
- • FEMA non-compliance with delayed payment settlements(p.322)
- • Acquisition integration risks and goodwill impairment exposure(p.318)
- • Foreign currency settlement delays with subsidiaries(p.371)
- • Disputed service tax liability(p.372)
- • Criminal proceedings against subsidiary for TDS default(p.377)
- • TDS deposit delay by subsidiary(p.378)
- • Expanding cloud communication market with growing enterprise adoption(p.21)
- • Growth in global mobile subscriber base driving demand for messaging services(p.21)
- • Strategic acquisition opportunities to expand service offerings and geographic presence(p.29)
- • Expansion into new geographic markets with higher growth potential(p.37)
- • Diversification into new communication solutions and MNO value-added services(p.21)
- • Geographic expansion into new markets with acquisition targets(p.92)
- • Strategic acquisitions to enhance capabilities and geographic reach(p.92)
- • Cost reduction through property purchase in Mumbai(p.93)
- • Expansion into emerging markets via subsidiary network(p.182)
- • Growing demand for enterprise messaging and cloud communications(p.220)
- • Government incentive schemes for BPO/IT operations(p.246)
- • Expand messaging and call center service offerings internationally(p.254)
- • Leverage international subsidiary network for market penetration(p.270)
- • Optimize capital structure through reduced leverage(p.264)
- • Growth in global A2P messaging market(p.341)
- • Increasing mobile subscriber base globally(p.341)
- • Expansion into emerging markets with faster growth(p.341)
- • Omni-channel communication platform development(p.337)
- • Transition of critical services to cloud computing(p.341)
- • Dependence on continuity of relationships with MNOs for service delivery(p.27)
- • Intensive competition from well-capitalized global competitors(p.31)
- • Significant foreign exchange exposure from international operations(p.32)
- • Extensive regulatory complexity across multiple jurisdictions affecting operations(p.34)
- • Economic volatility in key geographic markets affecting client spending(p.34)
- • Revenue volatility and seasonality dependent on client transaction volumes(p.38)
- • Technology infrastructure failures disrupting service delivery to clients(p.28)
- • COVID-19 pandemic disruption to business operations and economic activity(p.51)
- • Economic slowdown and reduced IT spending affecting client demand(p.51)
- • Health risks from portable mobile communication devices(p.52)
- • Natural and manmade disasters affecting operations and client services(p.52)
- • Evolving regulatory environment and tax law uncertainties(p.53)
- • India-specific macroeconomic risks affecting business operations(p.53)
- • Foreign investor restrictions limiting market price support(p.54)
- • Potential PFIC classification creating adverse US tax consequences(p.50)
- • Exposure to foreign exchange fluctuations affecting subsidiaries(p.222)
- • Dependence on related parties creating concentration risk(p.199)
- • Regulatory changes in foreign jurisdictions affecting operations(p.182)
- • Foreign currency exchange rate volatility affecting payables(p.262)
- • Interest rate risk on floating rate borrowings(p.263)
- • Regulatory compliance risks related to service tax and foreign exchange(p.267)
- • Customer concentration risk in trade receivables(p.260)
- • Volatile A2P messaging pricing driven by MNO dynamics(p.363)
- • Geographic pricing variations impact on margins(p.342)
- • COVID-19 pandemic impact on business operations(p.341)
- • Regulatory and compliance requirements across multiple jurisdictions(p.343)
- • Foreign currency exchange rate exposure(p.343)
- • Regulatory investigation by Directorate of Enforcement on overseas investments(p.377)
- • SEBI investigation involving company as intermediary for SMS manipulation(p.377)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Sandipkumar Gupta | Promoter/Selling Shareholder | 28.80% | — |
| Rajdipkumar Gupta | Promoter/Selling Shareholder | 28.80% | — |
| Sandipkumar Gupta | Promoter | 28.80% | 25.33% |
| Rajdipkumar Gupta | Promoter | 28.80% | 25.33% |
| Sandipkumar Gupta | Promoter | — | — |
| Rajdipkumar Gupta | Promoter | — | — |
| Sandipkumar Gupta | Promoter | 28.80% | — |
| Rajdipkumar Gupta | Promoter | 28.80% | — |
| Rajdipkumar Gupta | Promoter | — | — |
| Sandipkumar Gupta | Promoter | — | — |
| Chandrakant Gupta | Promoter | — | — |
| Sandipkumar Gupta | Promoter/Director | — | — |
| Rajdipkumar Gupta | Promoter/Managing Director | — | — |
| Sandipkumar Gupta | Promoter | — | — |
| Rajdipkumar Gupta | Promoter | — | — |
| Chandrakant Gupta | Promoter/Chairman | — | — |
| Rajdipkumar Gupta | Promoter/Managing Director | — | — |
| Sandipkumar Gupta | Selling Shareholder/Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.