Route Cell plans to utilise the IPO proceeds to repay current debt and make acquisitions.
The preliminary public provide (IPO) of Route Cell, a cloud communications platform service supplier, opens for subscription on Wednesday i.e. September 9, 2020. The Rs 600 crore public difficulty will likely be open for 3 buying and selling days until September 11. Route Cell has mounted the value band at Rs 345-350 per share.
The general public providing will comprise contemporary difficulty of as much as Rs 240 crore and provide on the market (OFS) of Rs 360 crore. A retail investor can bid for a minimal one lot, of 40 shares, and in multiples of 40 shares thereafter to a most of 14 tons. The shares will likely be listed on each the inventory exchanges, BSE and the NSE.
Route Cell raised Rs 180 crore from anchor buyers, together with Franklin Templeton Mutual Fund, Goldman Sachs, SBI Life Insurance coverage, Kuwait Funding Authority and Axis Mutual Fund, forward of the IPO.
Route Cell plans to utilise the proceeds of the contemporary difficulty to repay current debt, make acquisitions, buy workplace premises in Mumbai and for normal company functions.
The ebook working lead managers of the problem are ICICI Securities, Axis Capital, Edelweiss Monetary Companies and IDBI Capital Markets & Securities.
Sandipkumar Gupta and Rajdipkumar Gupta established Route Cell in 2004. The corporate has purchasers in Africa, Asia Pacific, Center East, Europe and North America.
Route Cell IPO is the fourth public providing this yr, following the SBI Playing cards and Fee Companies’ share providing in March, Rossari Biotech’s share sale in July and Happiest Minds IPO, which will likely be closed for subscription on Wednesday night. The Route Cell IPO comes as India continues to battle with the Covid19, with every day case depend mounting to 90,000.
What Brokerages Say
Motilal Oswal Monetary Companies
On the increased finish of the value band, the problem is valued at 29x FY20 P/E (totally diluted), which is corresponding to mid-sized IT corporations (no listed friends obtainable). We advocate Subscribe to the IPO given RML’s robust presence in area of interest CPaaS market with excessive entry barrier and wholesome financials. Additional given the small provide dimension and presence in area of interest IT house, one might get itemizing beneficial properties too.
HDFC Securities
Route Cell has repeatedly targeted on retaining and deepening relationships with its current buyer base with the assistance of a devoted key accounts administration group. It has grown its revenues with respect to explicit prospects and intends to give attention to income enlargement by means of cross-selling and up-selling a wider vary of providers and options to its current prospects. Its R&D group has augmented its CPaaS platform with a number of new channels of digital communication, which is able to drive development within the close to time period.
