The Rs 600-crore IPO of Route Mobile was once subscribed more than four times on Thursday, a day before its near. The 12.17-million share offering has so far garnered bids for 50.6 million shares, data given by inventory exchanges showed. Lots of the bids so far have come from retail investors. Institutional and wealthy investors most often tender on the final day of the IPO. Route Mobile has already allotted shares worth Rs 180 crore to anchor investors. Route Mobile IPO comprises fresh fund raising worth Rs 240 crore and the remaining is a secondary share sale by promoters.
The funds raised will be utilised to repay debt, make strategic acquisitions and purchase office premises in Mumbai.
The price band for the IPO is Rs 345 to Rs 350 per share. At the top-end, the company will be valued at almost Rs 2,000 crore on post-dilution basis. Also, the price-to-earnings more than one on based on FY20 earnings works out to almost 30 times, which has similarities to other mid-sized IT firms.