Key M&A : 2022
Tag: Mindtree
Route Mobile IPO : Subscribe or NOT?
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
Happiest Minds IPO crisp summary –heavily subscribed
Rossari biotech IPO detailed summary –It came out with flying colors
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Happiest Minds IPO : Subscribe or NOT?
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
Happiest minds– approx 9 Yr old company in IT digital services with cloud infrastructure, SaaS, cyber security
Key Service domains – Product engineering services ( approx 50% of revenues), Infrastructure management and security services ( approx 20% revenues), digital business solutions (approx 26%)
Customers — Software development services for independent vendors like Amazon web services, Intel, IBM, Microsoft, Salesforce
Revenues from Key regions — 77% from US, 12% from India, 11% from UK approximately
Revenues from industry — Edutech, hitech and BFSI approx 50% of revenues
Risks —
Promoter have 29% shares pledged as of now
Company wrote of accumulated losses last year
Case for discriminatory employment
Future
May gain from WFH culture in coming years
May gain from cloud related digital services and cyber security services
Valuations – Lower than Mindtree and NIIT,
Should we apply
If you already have something related to digital IT services in your portfolio, you can avoid.
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
Long term growth seems reasonable
Last one Rossari biotech IPO with prediction of 20% gains and good to hold for long term –It came out with flying colors
ROSSARI BIOTECH IPO : Quick analysis
IT : GROWTH STORY
Only segment which shows growth is IT Services Business , shows a trend where money is moving, Other segment impacted least is POWER segment but margin are too low
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