Route Mobile has received markets regulator Sebi's approval to raise an estimated Rs 600 crore through an initial share-sale. Incorporated in 2004, Route is among the leading cloud- communication platform service providers to enterprises, over-the-top players and mobile network operators.
Route Mobile gets nod for 600-cr IPO
The company had filed draft papers with Sebi in January, seeking its clearance to float an initial public offer (IPO) and received its ‘observations’ on August 16, as per the latest update with the markets regulator. Sebi's ‘observations’ are necessary for any company to launch a public issue like IPO, follow-on public offer (FPO) and rights issue.
Further, proceeds will be used for investment in subsidiaries for purchase of office premises in London and Singapore; purchase of business process outsourcing centre in Noida and for other general corporate purposes. According to merchant banking sources, the IPO is aiming to raise Rs 600 crore and the offering will value Route Mobile at around Rs 2,500 crore.