Route Mobile Limited provides cloud-communication platform as a service (“CPaaS”) to enterprises, over-the-top (“OTT”) players and mobile network operators. Incorporated in 2004, It services clients across sectors such as social media, banking and financial services, retail, logistics etc. The article is about Route Mobile IPO Review, Company Details, Issue Details.
Route Mobile IPO Issue Details
| IPO Date | Sep 9, 2020 – Sep 11, 2020 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 17,391,303 Eq Shares of ₹10 (aggregating up to ₹600.00 Cr) |
| Fresh Issue | [.] Eq Shares of ₹10 (aggregating up to ₹240.00 Cr) |
| Offer for Sale | [.] Eq Shares of ₹10 (aggregating up to ₹360.00 Cr) |
| Face Value | ₹10 per equity share |
| IPO Price | ₹345 to ₹350 per equity share |
| Market Lot | 40 Shares |
| Min Order Quantity | 40 Shares |
| Listing At | BSE, NSE |
| DRHP |
Company Historical Revenue
Its revenue from operations increased at a CAGR of 37.61% from ₹504.9 in fiscal 2018 to ₹956.2 crore in Fiscal 2020. In Q1FY21, Route Mobile reported a profit of ₹27 crore on revenue of ₹310 crore. The company had posted profit of ₹69 crore in FY20, up 26% from the previous year.
Objective of the Issue
The funds raised from fresh issue will be utilized to repay debt, make strategic acquisition, purchase office premises in Mumbai and balance for general corporate purpose.
About the Company
Incorporated in 2004, Route Mobile Limited is among the leading Communications Platform as a Service (CPaaS) provider and a tier-one application-to-peer (A2P) service provider. Its enterprise communication services include new age solutions in Messaging, Voice, Email, and SMS Filtering, Analytics & Monetization.
The company operates in 3 business verticals:
1. Enterprise: The Company provides a cloud-communication platform as a service to enterprises, over-the-top players, and mobile network operators around the world.
2. Mobile Operator: Services in this segment include SMS analytics, firewall, filtering, monetization, and hubbing solutions.
3. Business Process Outsourcing (BPO): The Company provides a range of BPO services including client support, technical support, booking, and collection services.
The company’s clients include some of the world’s largest organizations, including several Fortune Global 500 companies.
Competitive Strengths
1. Leading cloud communications service provider offering CPaaS.
2. Omnichannel Platform for easy campaign scheduling and reporting.
3. Easy to use the console to plan, deploy & monitor campaigns.
4. Global & Local customization expertise.
5. Consultative and Lean approach for better customer engagement.
Company Promoters:
Sandipkumar Gupta and Rajdipkumar Gupta are the promoters of the company.
Route Mobile IPO – Summary
They provide cloud-communication platform as a service (“CPaaS”) to enterprises, over-the-top (“OTT”) players and mobile network operators (“MNOs”).
Their enterprise solution comprises two primary components – the front-end that provides an interface for enterprises to integrate with, and a back-end which is directly integrated with over 240 MNOs, and provides access to over 800 MNOs across the globe, as of June 30, 2020, enabling them to leverage their SMS and voice channels for digital communication (“Super Network”).
Further, the backend is also integrated with OTT business messaging solution providers, and is capable of supporting Rich Communication Services (“RCS”) business messaging, offering multiple channels of communication to enterprises.
Their omni-channel platform enables enterprises to leverage various modes of digital communication to engage with their stakeholders – including customers, employees and vendors.
The Promoter of this company is Sandipkumar Gupta and Rajdipkumar Gupta. The lead managers to the issue are ICICI Securities Limited, IDBI Capital Markets & Securities Limited, Axis Capital Limited and Edelweiss Financial Services Limited, and the Registrar to this issue is KFin Technologies Private Limited.
Route Mobile IPO – Financial Statements
A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:
Financial Summary:
| Amount (in INR & millions) | ||||
| 30-Jun-20 | 31-Mar-20 | Mar-19 | 31-Mar-18 | |
| Total Assets | 6,348.31 | 6,265.48 | 5,057.81 | 4,473.66 |
| Total Revenue | 3,122.95 | 9,681.02 | 8,523.77 | 5,094.85 |
| Total Expense | 2,790.09 | 8,839.82 | 7,873.74 | 4,529.91 |
| Profit After Tax | 269.34 | 691.02 | 545.32 | 466.77 |
Earnings per Equity Share (in Millions)
| 30-Jun-20 | 31-Mar-19 | Mar-18 | 31-Mar-17 | |
| Basic & Diluted | 5.42 | 13.83 | 11.19 | 9.57 |
Their EBITDA for Fiscal 2018, 2019 and 2020, and the three months ended June 30, 2020 was Rs.801.35 million, Rs.999.63 million, Rs.1,116.67 million and Rs.402.99 million and their EBITDA margins for the same periods were 15.73%,
11.73%, 11.53% and 12.90%, respectively.
Their profit for the year/ period, for Fiscal 2018, 2019 and 2020 and the three months ended June 30, 2020 was Rs.466.77 million, Rs.545.32 million, Rs.691.02 million and Rs.269.34 million, respectively.
Revenue from their operations were Rs.5,049.48 million, Rs.8,446.68 million, Rs.9,562.52 million and Rs.3,096.14
million in Fiscal 2018, 2019 and 2020, and in the three months ended June 30, 2020, respectively.
Route Mobile IPO Review
So, the above chart contains the financial details of Route Mobile. It shows the company is making a moderate profit throughout the years. Now, let us have a look at the prospectus of the company. Its EPS (earnings per share) stands at 8.17 (as of FY18 basic and diluted). The company has not revealed the PE (price to earnings) ratio. It’s RoNW (Return on Net Worth) and NAV/share are 23.08
So based on these available data, Route Mobile IPO Review carries a POSITIVE view. It is advisable to subscribe the IPO.
