The Rs 600 crore Route Mobile initial public offer (IPO) is all set to hit the primary market on Wednesday. The omnichannel cloud communication service provider has fixed the price band for the issue at Rs 345-Rs 350 per share. At the higher end of the price band, the company is seeking 25.3 times PE on FY20 basis.

The issue would comprise of a fresh issue of up to Rs 240 crore. In addition, existing promoters would offer shares aggregating up to Rs 360 crore in an offer for sale (OFS). This would include shares of up to Rs 180 crore by Sandipkumar Gupta and up to Rs 180 crore by Rajdipkumar Gupta.

Investors could bid for a minimum bid lot of 40 shares and in multiples of 40 shares, thereafter. The issue will close on September 11, Friday.

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Incorporated in 2004, the Mumbai-headquartered company carries on mainly three operations: Enterprise, mobile operator and business process outsourcing. The enterprise vertical primarily provides cloud-based communication platform to enterprises. The mobile operations include services such as SMS analytics, firewall, filtering, monetisation and CPaaS (cloud-communication platform as a service) and hubbing solutions. In April 2017, the company acquired a BPO Call2Connect, through which the company integrates the BPO capabilities with its enterprise voice platform. Over 80 per cent of the revenues that the company generates is in foreign currency. According to the ROCCO Report 2020, the company was ranked as a tier I application-to-peer service provider internationally.

As of June 30, the company had served more than 30,150 clients since its inception. The company has direct relationships with over 240 mobile network operators (MNOs). It provides its enterprise clients from Africa, Asia Pacific, Europe, Middle East and North America access to over 800 mobile networks. Top 10 clients account for about 64 per cent of the company's revenues, with the top client contributing 15.45 per cent to FY20 revenues.

Route Mobile, which has six strategically-located data centres, said its profit stood at Rs 79.60 crore in FY20 against Rs 74.8 crore in FY19 and Rs 58.10 crore in FY18. Return on equity (RoE) stood at 30 per cent for FY20 against 36 per cent each in FY19 and FY18. In terms of PAT margins, the company reported a margin of 8 per cent in FY20, down from 9 per cent in FY19 and 11 per cent in FY18.