The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

Route Mobile– almost 16 yr old company –technology service provider specializing in communication services to enterprises. Acts as communication platform as a service

Offer purpose — 360cr as offer for sale by promoters and 240 cr as fresh issue. so 40% will flow to company to reduce loans, acquire companies etc

Key Service domains – Messaging services and Call center services

Clients -ICICI Bank, State Bank of India, Skype, Emirates Airlines, Bank of Maharashtra, WeChat, OSN and Viber.

Revenues from Key regions — 82% from exports, 12% from India,

Revenues from clients— Largest client 15% , 64% from top 10 clients

Risks —

Greater dependency on 3rd parties mobile network operations,Rely on 3rd party technology systems and infrastructure

Major revenues from limited client. So high concentration risk, although total clients 2500+.

Risk of potential claims resulting from the client’s misuse of its platform to send unauthorized text messages in violation of TRAI regulations.

Future

May gain from clients consistent need to serve more customers with limited resources

Billable transaction increasing at good rate and most companies pay it in advance

Long term growth seems reasonable and demand seems to increase in coming years

Valuations

Similar to peers in India and less than globally listed peers

Should we apply

High chances of over subscription and less allotment

Possible gains on Listing day can be seen but caution is advised to book profits if any

2+ year holding can give substantial gains if things workout well

Also Read

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