Route Mobile share made a strong debut on Monday delivering over 100% gains to its investors. Stock of Route Mobile listed at a premium of 102.28% above its IPO issue price of Rs 350 on BSE. Route Mobile share opened at Rs 708, gaining Rs 358 compared to its issue price today. The share further rose to an intra day high of Rs 735, a gain of Rs 385 or 110% above its issue price.
Market cap of the cloud communications service provider rose to Rs 3,807 crore. Total 21.92 crore shares changed hands amounting to turnover of Rs 151.16 crore on BSE.
On NSE, the share opened at Rs 717, gaining 104.85% to its issue price of Rs 350. Route Mobile stock rose 110% above its issue price to Rs 735 on an intra day basis.
At 11:14 am, the share was trading 6.17% or Rs 43 lower than its opening at Rs 663 on BSE.
Route Mobile raised Rs 600 crore through the IPO which was held from September 9 to September 11. On NSE too, the share saw some profit-booking and fell 6.44% or Rs 46.20 to Rs 670.80 in early trade.
On day 2, the IPO received 4.15 times bids compared to the issue size. As per data with NSE, the issue received bids for 5,05,09,920 shares by the end Thursday.
The IPO was fully subscribed on the first day. The public offer received bids for 1,22,31,600 shares against the total issue size of 1,21,73,912 shares. The portion for non-institutional investors was subscribed 46 per cent, that for qualified institutional buyers (QIBs) was subscribed 1 per cent. The retail individual investors' portion was subscribed 1.80 times.
Route Mobile on September 8 received Rs 180 crore from anchor investors. The initial public offer comprised a fresh issue of Rs 240 crore and an offer for sale of Rs 360 crore. Price range for the offer was fixed at Rs 345-350 per share.
The company proposes to utilise the net proceeds for repayment or pre-payment, in full or part, of certain borrowings of the company, acquisitions and other strategic initiatives, purchase of office premises in Mumbai, and general corporate purposes.
ICICI Securities, Axis Capital, Edelweiss Financial Services and IDBI Capital Markets and Securities were the managers to the offer.