Route Mobile Limited is hitting the primary market by providing an IPO from today and is live on AsthaTrade IPO portal from 10 am. To have an understanding of the company we are providing you with the basics of the company as your trusted broker. Let’s have a look and then make a decision!
The price band for the issue has been fixed at Rs 345-Rs 350 per share by the omnichannel cloud communication service provider. At the higher end of the price band, the company is seeking 25.3 times PE on FY20 basis.The issue would comprise of a fresh issue of up to Rs 240 crore. In addition, existing promoters would offer shares aggregating up to Rs 360 crore in an offer for sale (OFS). Investors could bid for a minimum bid lot of 40 shares and in multiples of 40 shares, thereafter. The issue will close on September 11, Friday.
What the company is all about:
The company holds on three operations primarily which entails Enterprise, mobile operator and business process outsourcing. Incorporated in 2004, the company is headquartered in Mumbai. The enterprise vertical mainly contributes cloud-based communication platforms to enterprises. The mobile operations comprise services such as SMS analytics, firewall, filtering, monetisation and CPaaS (cloud-communication platform as a service) and rubbing solutions. In April 2017, the company obtained a BPO Call2Connect, through which the company merged the BPO capabilities with its enterprise voice platform. Over 80 per cent of the revenues that the company generates is in foreign currency. According to the ROCCO Report 2020, the company was ranked as a tier I application-to-peer service provider internationally.
The Customer Base
The company has direct relationships with over 240 mobile network operators (MNOs). It delivers its enterprise clients from Africa, Asia Pacific, Europe, the Middle East and North America access to over 800 mobile networks. Top 10 clients account for about 64 per cent of the company’s revenues, with the top client contributing 15.45 per cent to FY20 revenues.
Route Mobile, which has six strategically-located data centres, said its profit stood at Rs 79.60 crore in FY20 against Rs 74.8 crore in FY19 and Rs 58.10 crore in FY18. Return on equity (RoE) stood at 30 per cent for FY20 against 36 per cent each in FY19 and FY18. In terms of PAT margins, the company reported a margin of 8 per cent in FY20, down from 9 per cent in FY19 and 11 per cent in FY18.
In FY20, the company’s platform oversaw more than 30.31 billion billable transactions from its clients and was used by more than 2,700 clients. It regulated 24.74 billion billable transactions in FY19.