The Rs 600-crore IPO of Route Mobile was subscribed more than four times on Thursday, a day before its close. The 12.17-million share offering has so far garnered bids for 50.6 million shares, data provided by stock exchanges showed. Most of the bids so far have come from retail investors. Institutional and wealthy investors typically bid on the last day of the IPO. Route Mobile has already allotted shares worth Rs 180 crore to anchor investors. Route Mobile IPO comprises fresh fund raising worth Rs 240 crore and the remaining is a secondary share sale by promoters.
The funds raised will be utilised to repay debt, make strategic acquisitions and purchase office premises in Mumbai.
The price band for the IPO is Rs 345 to Rs 350 per share. At the top-end, the company will be valued at nearly Rs 2,000 crore on post-dilution basis. Also, the price-to-earnings multiple on based on FY20 earnings works out to nearly 30 times, which is similar to other mid-sized IT firms.