Route Mobile, a cloud communications service provider, on Tuesday said it had garnered Rs 180 crore from 15 anchor investors ahead of its initial share-sale offer that opens for public subscription on Wednesday.

Goldman Sachs, Franklin Templeton Mutual Fund, SBI Life Insurance, Kuwait Investment Authority, Vantage Equity Fund, Axis Mutual Fund, Macquarie, and SBI Mutual Fund are among the anchor investors, according to information available with stock exchanges.

Route Mobile has finalised allocation of 51,42,856 shares at Rs 350 apiece to 15 anchor investors. Based on the price, the total proceeds would be to the tune of Rs 180 crore, it added.

The company proposes to raise Rs 600 crore through the initial public offer (IPO), which comprises fresh issue of shares worth Rs 240 crore and an offer for sale (OFS) of Rs 360 crore by promoters Y Sandipkumar Gupta and Rajdipkumar Gupta.

A price band of Rs 345-350 apiece per share has been fixed for the IPO that will open on September 9 and conclude on September 11.

The company proposes to utilise the net proceeds towards funding 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.

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The company received approval from markets regulator Sebi in December 2019 to float IPO.

The cloud communications service provider had initially filed for its IPO in January 2018. Later it refiled its document in October 2019. According to market sources, the company failed to bring its IPO even after receiving approval in 2018 because of unfavourable market conditions.

ICICI Securities, Axis Capital, Edelweiss Financial Services, and IDBI Capital Markets & Securities are the managers to the issue.

Route Mobile does not have a direct comparable listed peer in India. It will become the second firm in the larger mobile communication services after Affle India.

(Disclaimer: Additional background information has been added to this PTI copy for context)

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Original Source: yourstory.com