The Company was issued final observations by the capital market regulator, SEBI on December 24, 2019, according to the information published on its website.
According to the Draft Red Herring Prospectus (DRHP) filed by the company, the offer comprises of a fresh issue worth Rs240cr and an Offer for Sale (OFS) of Rs360cr by the promoters, Y Sandipkumar Gupta and Rajdipkumar Gupta. Additionally, a pre IPO placement of up to aggregating up to Rs100cr may be considered in consultation with the BRLMs which will reduce the size of the offer, retrospectively.
ICICI Securities Limited, Axis Capital Ltd, Edelweiss Financial Services Ltd, IDBI Capital Markets & Securities Limited are the BRLMs to the issue.
The company will use Rs36.9cr towards repayment and advance payment of certain borrowings, Rs83cr for acquisitions and other strategic initiatives besides the purchase of an office premise.
The company has serviced more than 27,500 clients across sectors including BFSI, Aviation, Retail, E-Commerce, Logistics, Healthcare, Hospitality,
Media and Entertainment, Pharmaceuticals and Telecom. Its total revenue increased at a CAGR of 37.87% from Rs4,575 million in FY2017 to Rs8,446.68 million in FY 2019.
Route Mobile hasn’t had any capital infusion in the company since 2007, all the growth has been funded through internal accruals and the strategy going forward would be to augment its cloud services across multiple channels of communication, cross-sell and upsell multiple solutions to enterprises to become a one-stop solution and adopt a bimodal go to market strategy via its developer community programme.