Initial public offering of up to [●] equity shares of face value ₹ 10 each of Route Mobile Limited (“Company”) (“Equity Shares”) for cash at a price of ₹ [●] per Equity Share including a premium of ₹ [●] per equity share (“Offer Price”), aggregating up to ₹ 600 crore (“Offer”). The Offer comprises a fresh issue of up to [●] Equity Shares aggregating up to ₹ 240 crore (“Fresh Issue”) and an offer for sale of up to [●] Equity Shares aggregating up to ₹ 360 crore by the selling shareholders being the promoters, including up to [●] Equity Shares aggregating up to ₹ 180 crore by Sandip Kumar Gupta and up to [●] Equity Shares aggregating up to ₹ 180 crore by Rajdip Kumar Gupta (“Offer for Sale”). The Offer shall constitute up to [●] % of the fully diluted post-offer paid-up equity share capital of the Company.
· Minimum Bid lot is 40 Equity Shares and in multiples of 40 Equity Shares thereafter
· Price Band of ₹ 345 – ₹ 350 per Equity Share
· Offer opening date – September 9, 2020 and Offer closing date – September 11, 2020
· The floor price is 34.5 times the face value of the Equity Shares and the cap price is 35 times the face value of the Equity Shares.
New Delhi, September 4, 2020: Route Mobile, among the leading Omnichannel Cloud Communication Service Provider (CPaaS), to enterprises, over-the-top (“OTT”) players and mobile network operators (“MNOs”), with a client base including world’s largest and well known organizations across social media companies, banking and financial services, aviation, retail, e-commerce, logistics, healthcare, hospitality, telecom sector; will be opening its initial public offering on September 9, 2020 and will close on September 11, 2020, with a price band of ₹ 345 – ₹ 350 per Equity Share. Bids by anchor investors shall be submitted, and allocation to them will be completed on September 8, 2020, being one working day prior to the Offer opening date.
The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”) read with Regulation 31 of the SEBI ICDR Regulations and in compliance with Regulation 6(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be allotted on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (the “QIB Portion”), provided that the Company and the Selling Shareholders in consultation with the BRLMs may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (“Anchor Investor Portion”). One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from the domestic Mutual Funds at or above the Anchor Investor Allocation Price. 5% of the Net QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All potential Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective ASBA accounts, and UPI ID (in case of RIBs) if applicable, in which the corresponding Bid Amounts will be blocked by the SCSBs or under the UPI Mechanism, as applicable. Anchor Investors are not permitted to participate in the Offer through the ASBA process.
Incorporated in 2004, the Company has served more than 30,150 clients since its inception, as of June 30, 2020. The Company has been ranked 2nd Globally as a tier 1 application-to-peer service provider and 1st for value added services amongst tier 1 vendors as per the “A2P SMS Messaging Vendor Performance Report 2017” dated June 2017 prepared and issued by Roaming Consulting Company Limited. The business verticals of the company include Enterprises, Mobile Operator, and Business Process Outsourcing for clients across Africa, Asia Pacific, Europe, Middle East and North America.
The company operates through prepaid and postpaid business models with high operating margins and low cost base. The indigenously developed CPaaS platform is scalable with limited capital expenditure requirements. In FY 20, Route Mobile processed more than 30.31 billion billable transactions and in three months ended 2020, it processed more than 6.95 billion billable transactions.
The Company generated revenue from operations - ₹ 504.9 crore, ₹ 844.6 crore, ₹ 9,56.2 crore and ₹ 309.6 crore in fiscal 2018, 2019 and 2020, and in the three months ended June 30, 2020, respectively.
The Company proposes to utilize 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 Limited, Axis Capital Limited, Edelweiss Financial Services Limited and IDBI Capital Markets & Securities Limited have been appointed as the book running lead managers to the Offer and KFin Technologies Private Limited is appointed as the Registrar to the Offer. The Equity Shares offered through the RHP are proposed to be listed on National Stock Exchange of India Limited (“NSE”) and BSE Limited (“BSE”).
About Route Mobile
Established in 2004, Route Mobile Limited (“RML”) is a cloud communications platform service provider, catering to enterprises, over-the-top (OTT) players and mobile network operators (MNO). RML’s portfolio comprises solutions in application-to-peer (“A2P”) / peer-to-application (“P2A”) / 2 Way Messaging, RCS, OTT business messaging, voice, email, and omni-channel communication. Further, we also offer SMS analytics, firewall, filtering and monetization, SMS hubbing and Instant Virtual Number (“IVN”) solutions to MNOs across the globe. RML has a diverse enterprise client base across a broad range of industries including social media companies, banks and financial institutions, e-commerce entities and travel aggregators. RML is headquartered in Mumbai, India with a global presence in Asia Pacific, Middle East, Africa, Europe and North America.
“Route Mobile Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has registered the red herring prospectus dated September 2, 2020 (“RHP”) with the Registrar of Companies, Maharashtra at Mumbai. The RHP is available on the SEBI website at www.sebi.gov.in, on the websites of the stock exchanges at www.bseindia.com and nseindia
Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, please see the section “Risk Factors” beginning on page 23 of the RHP.” The Equity Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws in the United States and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. Accordingly, the Equity Shares are only being offered and sold (i) in the United States only to persons reasonably believed to be “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act, “Rule 144A”) in reliance on the exemption from registration requirements of the Securities Act provided by Rule 144A, and (ii) outside the United States in offshore transactions in reliance on Regulation S under the Securities Act. Prospective purchasers are hereby notified that the seller of the Equity Shares may be relying on the exemption from the registration requirements of the Securities Act provided by Rule 144A. There will be no public offering in the United States.
It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the Red Herring Prospectus has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the Red Herring Prospectus. The investors are advised to the Red Herring Prospectus for the full text of the Disclaimer clause of the BSE Limited.
It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the Disclaimer clause of NSE.