Route Mobile surges 18%; stock zooms 134% against issue price in 3 days

A chunk of foreign portfolio investors (FPIs) like Goldman Sachs and Kuwait Investment Authority acquired shares worth of Rs 210 crore of the company on its debut.
Shares of Route Mobile surged 18 per cent to Rs 818 on the BSE in the intra-day trade on Wednesday after making a stellar debut earlier this week.

On Monday, the stock made a strong debut and ended at Rs 650, clocking a gain of 86 per cent against the issue price of Rs 350 per share. With today's rally, the stock has zoomed 134 per cent against the issue price.

A chunk of foreign portfolio investors (FPIs) like Goldman Sachs and Kuwait Investment Authority acquired shares worth of Rs 210 crore of the company on its debut.

Goldman Sachs India Fund Limited, Goldman Sachs Trust Emerging Markets Equity Fund and GS FDS Sicav GS Global Emg Mkts EQ Portfolio bought a combined 2.41 million equity shares worth of Rs 170 crore. These investors purchased shares at price of Rs 705.95 per share on the NSE on bulk deal, data show.

Meanwhile, Kuwait Investment Authority A/C Kuwait Investment Auth FD 225 lapped up 578,504 shares of Route Mobile at Rs 697.25 per share, data show. The names of the sellers were not ascertained immediately.

Route Mobile is a leading Cloud Communication Platform provider, catering to enterprises, over-the-top (OTT) players and mobile network operators (MNO). The company's product portfolio includes smart solutions in messaging, voice, email, and SMS filtering, analytics and monetisation.

"The impact of Covid-19, unlike in many other industries, has been extremely positive for the digital marketing and digital communication industry. Digital communication roadmaps which enterprises originally planned to implement over a few years timeframe, were accelerated, and implemented over a period of weeks, to ensure that enterprises continue to engage and interact with their consumers," Route Mobile said in its FY2019-20 annual report.

Digital transformation projects were accelerated by practically all large enterprises across the globe, and significant investments have already been made to ensure customer retention and engagement through this challenging phase. In certain surveys conducted across industry segments, results indicate that over 97 per cent of enterprises have sped up their digital transformation projects, and accelerated their digital communication strategy by almost 6 years, it said.

At 12:56 pm, the stock was trading 15 per cent higher at Rs 795 on the BSE, as against 0.30 per cent decline in the S&P BSE Sensex. A combined 9.85 million equity shares had changed hands on the counter on the NSE and BSE till the time of writing of this report.

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