India: Cloud services platform Route Mobile files IPO papers to raise $94m

Birds rest on the logo of the Securities and Exchange Board of India (SEBI), REUTERS/Shailesh Andrade/Files

Route Mobile Ltd, a provider of cloud-communication platform services, on Monday filed the draft red herring prospectus (DRHP) for its initial public offering (IPO).

According to the draft prospectus, the share sale will include a fresh issue worth Rs350 crore, while the promoters will offer 6.5 million shares in an offer for sale.

The share sale is expected to be for around Rs600 crore, two people aware of the development said, //on condition of anonymity//.

The company is also considering a pre-IPO placement of Rs125 crore. “If the pre-IPO placement is completed, the size of the offer will be reduced to the extent of such pre-IPO placement,” according to the DRHP.

The proceeds from the fresh issue will be utilized for investment in Route Mobile (UK) Ltd for repayment of the loan availed from Deutsche Bank AG, repayment or pre-payment of certain existing loan facilities of the company, acquisitions and other strategic initiatives, investment in subsidiaries for purchase of office premises in London and Singapore, purchase of business process outsourcing center in Noida and to meet General corporate expenses.

Route Mobile provides cloud-communication platform services to enterprises, over-the-top (OTT) players and mobile network operators. The company provides services such as messaging, voice, email and SMS filtering, analytics and monetization to clients across different sectors including banking and financial services, aviation, retail, e-commerce, logistics, healthcare, hospitality, media and entertainment, pharmaceuticals and telecom.

In fiscal 2017, Route Mobile reported a revenue of Rs207 crore, up 7.5% compared to the previous year. It reported a profit of Rs51.94 crore in 2016-17, up 77.7% from a year earlier.

The company has hired Motilal Oswal Investment Advisors Ltd, IDBI Capital Markets & Securities Ltd and YES Securities (India) Ltd to manage the public offering.

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This story was first published on Livemint