Mobile messaging and API firm Route Mobile files for IPO

Messaging and voice application programming interface company Route Mobile Limited has filed a draft prospectus with SEBI for an IPO. The IPO size is estimated at Rs 6 billion ($94 million). The IPO and subsequent listing will make Route Mobile the first company in the mobile communication services space to go public. The company has proposed the issue of fresh shares worth Rs 3.5 billion. Motilal Oswal Investment Advisors, IDBI Capital Markets & Securities, and Yes Securities (India) are managing the IPO. Route Mobile will use Rs 0.77 billion of the net proceeds to repay debt, Rs 0.75 billion for acquisitions and other strategic initiatives, Rs 0.8 billion to purchase office premises in Singapore and London, and Rs 0.2 billion to set up a business outsourcing centre in Noida. The remaining amount will be used for general corporate purposes.