Route Mobile gets Sebi nod for Rs 600 cr IPO

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Route Mobile gets Sebi nod for Rs 600 cr IPO
New Delhi, Jan 2 () RouteMobile has received markets regulator Sebi's nod to raise an estimated Rs 600 crore through initial public offering.

The cloud communications service provider had initially filed for it's IPO in January 2018, later it refiled its document on October 3, 2019.

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According to merchant banking sources, unfavourable market condition was the reason the company failed to bring its IPO even after receiving approval in 2018.

The company was issued "observations" letter by Sebi on December 24, 2019, according to information available on the regulator's website.

The regulator's observations are necessary for any company to launch public issue like initial public offer, follow-on public offer and rights issue.

As per the draft red herring prospectus (DRHP) filed by the company, the offer comprises a fresh issue worth Rs 240 crore and an offer for sale (OFS) of Rs 360 crore by promoters Y Sandipkumar Gupta and Rajdipkumar Gupta.

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Additionally, a pre-IPO placement aggregating up to Rs 100 crore may be considered in consultation with the book running lead managers (BRLMs) which will reduce the size of the offer, retrospectively, it said.

ICICI Securities, Axis Capital, Edelweiss Financial Services and IDBI Capital Markets & Securities are the managers to the issue.

The company will use the proceeds towards repayment and advance payment of certain borrowings, acquisitions and other strategic initiatives besides purchase of an office premise. SUM BAL
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