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Route Mobile share zooms 19% as Goldman Sachs hikes stake

BusinessToday.In     September 23, 2020

Shares of newly listed Route Mobile jumped over 19 per cent on Wednesday after foreign portfolio investor (FPI) Goldman Sachs increased its stake in cloud communication services provider to 5.23 per cent. The stock made strong debut on Monday, listing at a premium of 102.28 per cent above its IPO issue price of Rs 350 on BSE. The share has rallied as much as 135 per cent in the last three sessions against the issue price.

In an exchange filing, Route Mobile said that Goldman Sachs Assets Management International has purchased additional 3.99 lakh equity shares in the company, or 0.7 per cent of the total paid-up equity, via open market transactions on Wednesday. Earlier on Tuesday, Goldman Sachs had acquired 25.74 lakh equity shares in the company, or 4.53 per cent of the total paid-up equity. As a result, US-based Goldman Sachs' total investment in Route Mobile increased to 5.23 per cent.

Continuing its gaining momentum, shares of Route Mobile gained as much as 19.16 per cent to settle at Rs 825.55 apiece on Wednesday, against its previous closing price of Rs 692.80. During the day's trade, the stock hit a fresh high of Rs 831.35 after opening higher at Rs 714. In contrast, the BSE Sensex ended 65.66 points, or 0.17 per cent, lower at 37,668.

In a similar trend, share price of Route Mobile ended 20 per cent higher at Rs 833.10 on the National Stock Exchange (NSE).

The share of Route Mobile made a stellar debut on BSE and NSE on September 21, delivering over 100 per cent returns to its investors. The company raised Rs 600 crore through the IPO which was held between September 9 to September 11. The 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. Ahead of IPO, the company had raised Rs 180 crore from anchor investors.

Route Mobile intended to utilise the fund 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.

By Chitranjan Kumar

Also Read: Route Mobile share makes stellar debut, lists at 105% premium over issue price

Also Read: Route Mobile stock rises 7% after Goldman Sachs buys 24 lakh shares

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