Route Mobile share price surges 6.74% on investment from Goldman Sachs; zooms 98% from IPO price

Route Mobile share price surged 6.74 per cent to Rs 695 apiece on BSE, after Goldman Sachs invested in the company through three funds – Goldman Sachs India Fund, Goldman Sachs Trust Emerging Markets Equity Fund, GS FDS Sicav GS Global. Route Mobile shares debuted on the stock exchange on Monday and listed with 105 per cent premium over its IPO price. Soon after, the cloud communication services provider shares jumped to scale a new high of Rs 735, up 110 per cent from its issue price of Rs 350. According to the NSE bulk deals data, Goldman Sachs India Fund acquired 4.75 lakh equity shares of the company, Goldman Sachs Trust Emerging Markets Equity Fund bought 8 lakh shares and GS FDS SICAV GS Global Emerging Markets Equity Portfolio lapped up 11.3 lakh shares at Rs 705.95 per share.

In the morning deals, Route Mobile shares fell 2.32 per cent to day’s low of Rs 635.95 apiece. But minutes after the trading, the stock swung into the green. In two days, the stock has zoomed 98.57 per cent from its issue price, in an otherwise weak market. Kuwait Investment Authority A/C Kuwait Investment Authority Fund 225 also bought 5.78 lakh shares of Route Mobile at Rs 697.25 per share. “Market is keen to look out for companies in the technology space with presence across countries and Route Mobile offers this opportunity with a strong business model and unique service offering,” said Hemang Jani, Head – Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services Ltd. Jani also added that the issue got a strong response in the IPO with massive subscription at 73.3 times and at the listing price there is significant wealth creation for retail investors and promoters.

In the noon deals, Route Mobile shares were trading 5.11 per cent higher at Rs 684.35 apiece, as compared to a 0.73 per cent fall in S&P BSE Sensex. “Seems like Route Mobile listing has shown a new ‘route’ to the IPOs that are waiting to be listed in rest of 2020,” said Krupesh Thakkar, CFA, HoD – Financial Markets, ITM B-School, Navi Mumbai. With a listing at 102-105 per cent gain, Route Mobile is ringing another tune of happiness for the investors, following the Happiness Minds Technologies debut on the stock exchange at a gain of 111% (highest in a decade) at Rs 350.