Route Mobile IPO - Angel Broking

Mr. Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd

"Incorporated in 2004, Route Mobile providing range of enterprise communication services include application-to-peer ("A2P") / peer-to-application ("P2A") / 2 Way Messaging, RCS, OTT business messaging, voice, email, and omni-channel communication have announced Rs.600 cr IPO. IPO comprises fresh issue of Rs.240 cr and offer for sale of Rs.360 cr. Funds of the issue will be utilised by the Company for repayment of borrowings, acquisitions, purchase of office premises and general corporate purposes. One Lot consists of 40 shares in the price band of Rs.345-350 implying 25.3x PE on F.Y.20 basis. There are no listed peers for the Company in India. Offer period is September 9, 2020 to September 11, 2020. In the last 2 financial years revenue and PAT CAGR is 37.6% and 21.7% respectively. Company's 20% revenue comes from the domestic market and the remaining 80% from the international market. Operating profit has declined from 15% in F.Y.18 to 10.4% in F.Y.20 due to decline in gross margins from 32.5% to 20.1% from F.Y.18 to F.Y.20."

Source : Equity Bulls

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