Route Mobile has received markets regulator Securities and Exchange Board of India’s (SEBI) approval to raise an estimated Rs 600 crore through an Initial Public Offering (IPO). The IPO comprises fresh issue of shares worth Rs 350 crore and an offer for sale of up to 65 lakh shares by founders Sandipkumar Gupta and Rajdipkumar Gupta.
The company, which filed the draft red herring prospectus with the SEBI in January, got the regulator’s approval on August 16. Motilal Oswal Investment Advisors, IDBI Capital Markets & Securities and YES Securities (India) are book running lead managers to the issue.
The funds will be utilized towards investment in Route Mobile (UK) for payment of the loan availed from Deutsche Bank AG as well as for acquisitions and other strategic initiatives. Further, proceeds will be used for investment in subsidiaries for purchase of office premises in London and Singapore; purchase of business process outsourcing centre in Noida and for other general corporate purposes.
Incorporated in 2004, Route is among the leading cloud- communication platform service providers to enterprises, over-the-top players and mobile network operators.
