Route Mobile IPO: Consolidated Brokerage Views

This post on Route Mobile IPO attempts to bring out consolidated brokerage views , subscription information, Grey Market Premium (GMP) and anchor investor information where applicable. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to Route Mobile IPO or not.

Related Posts : Route Mobile IPO Review

Route Mobile IPO: Grey Market Premium etc.

  • 08-09-20 GMP 170-180

Route Mobile IPO: Anchor Investors

Route Mobile garnered Rs 180 crore from 15 anchor investors ahead of its IPO. Thde Anchor investors include Goldman Sachs, Macquarie, SBI Life Insurance, Kuwait Investment Authority, Vantage Equity Fund, Axis Mutual Fund, SBI Mutual Fund, Franklin Templeton Mutual Fund etc.

Subscription: Route Mobile IPO ( x times)

Day / X timesQIBNIIRetailTotal 
Day 391.06192.8112.8574.13
Day 10.010.461.831.02
Total  Applications ~ 1516451
Appl wise Retail 10.11 x

Consolidated Brokerage Views on Happiest Minds IPO

BusinessLine :”Subscribe: Route Mobile is a technology service provider specialising in communication services to enterprises. It operates as a CPaaS company that provides ‘Communication Platform as a Service’ to enterprise clients. The firm reported strong revenue growth and its future prospects seem sound.

Capital Market : ” Score 48/100 ; The consolidated EPS for FY2020 on post issue equity of Rs 56.86 at the upper price band and Rs 56.96 at the lower price band works out to Rs 12.2 and Rs 12.1 respectively. The asking price of Rs 345-350 discounts the EPS 28.4 to 28.8 times. There are no listed entities in India whose business portfolio is comparable with that of the business of the company “

Choice Broking: “At the higher priceband, the demanded P/E valuation is 28.8x, which we believe is attractive for a company engaged in mobile technologyservices. A2P messaging services are most widely used by the enterprise and post-Covid world, migration to digital worldwill accelerate. RML has certain business moat like scale, collaboration with MNOs etc., which may act as an entry barrierfor a new player. Considering the above observations, we assign a “SUBSCRIBE” rating for the issue.”

HEM Securities: “According to the ROCCO Report 2020, company was ranked as a tier one application-to-peer (“A2P”) service provider internationally. Further, company was ranked second globally as a tier one A2P service provider in 2017. Company was also ranked first for ‘value added services’ provided, its ‘implementation process’ and its ‘uptime performance’ among tier one vendors. In the three months ended June 30, 2020, through its cloud communications platform, company processed more than 6.95 billion billable transactions. In Fiscal 2020, company’s platform managed more than 30.31 billion billable transactions from its clients and was used by more than 2,700 clients while it managed more than 24.74 billion billable transactions in Fiscal 2019.Therefore, we recommend “Subscribe” to the Route Mobile issue both for listing gains & long term horizon.”

KR Choksey: At the price band of Rs345-350, the Route Mobile issue comes priced at a PE of 18.2x-18.5x annualised 1QFY21 EPS. This appears to be reasonable, given the healthy growth being witnessed by the firm, its strong clients relationships across the board including with enterprises, MNOs and OTT operators, diverse client base across industry verticals, good financial track record and highly experienced promoter team. Given the impressive performance in 1QFY21, we believe there is a high probability of the company continuing to record impressive growth. We this recommend a SUBSCRIBE to the issue, with the potential for healthy listing gains.”

Religare : “The financial track record has been encouraging for the company with revenue and PAT CAGR of 37.6% and 21.7% respectively. Going forward, we believe the growth prospects looks promising for the company led by positive industry trends coupled with company’s constant focus on innovation, enhancing offerings and widening geographical reach. Further, it would continue to focus on in-organic opportunities which would aid growth momentum and widen its service offerings. On the valuation front, the company is valued at a P/E of 18.5x (post-issue) FY21 annualized EPS.One can invest in the company for long term.”

SMC: “Score 3/5 ; Route mobile is a niche player that provides cloud-communication platform as a service to enterprises, over-the-top players and mobile network operators. However, its business depends on the success of their relationship with mobile network operations. It relies on 3rd party technology systems and Infrastructure where defects, delays and failures can adversely affect its business. Its revenues come through a limited number of clients. Ahigh risk investor may opt the issue”

SP Tulsiyan Website: “In view of contracting profit margin, structured objects of fresh issue, client concentration risk and unattractive pricing, one can give the Route Mobile IPO a miss.”


Standard disclaimer: I am not a SEBI registered analyst /investment adviser and above infoimration is collated from various online sources and is for educational purpose only. Please visit indidivual brokearge sites to read the actual reports. Please donot make ypur investkent decisions based on this info as it is not completre amd exhaustive. Please do your own due diligence as stock market investments have high degree of inherent risk.

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