Route Mobile Buyback 2022

Route Mobile is a publicly listed company and among the leading Cloud Communications Platform service provider offering Communication Platform as a Service (CPaaS) solutions. We cater to enterprises, over-the-top (OTT) players, and mobile network operators (MNO) and our portfolio comprises solutions in messaging, voice, email, SMS filtering, analytics, and monetization. We deliver an entire communication product stack, based on a CPaaS principals, infusing Conversational AI across a broad range of industries including social media companies, banks and financial institutions, e-commerce entities, and travel aggregators. Route Mobile is headquartered in Mumbai, India with a global presence in the Asia Pacific, Middle East, Africa, Europe, and the Americas.

Buy Back Offer Deal:

Buyback Type: Open Market
Buyback Offer Amount: ₹ 120
Date of Board Meeting approving the proposal: Jun 28 2022
Date of Public Announcement: Jun 28 2022
Buyback Offer Size: 1.12%
Buyback Number of Shares: 705882
Price Type: Open Market
FV: 10
Buyback Price: ₹ 1700 Per Equity Share

Details of Buyback:

Approved the buyback by the Company of its fully paid-up equity shares having face value of INR 10/- (Indian Rupees Ten only) each ("Equity Shares") at a price not exceeding INR 1,700 (Indian Rupees One Thousand Seven Hundred only) per Equity Share ("Maximum Buyback Price") and for an aggregate amount not exceeding INR 120,00,00,000 (Indian Rupees One Hundred Twenty Crores only) ("Maximum Buyback Size"), from the shareholders of the Company excluding promoters, promoter group and persons who are in control of the Company, payable in cash via the "Open Market" route through the stock exchanges mechanism, in accordance with the provisions under the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018 ("Buyback Regulations"), as amended and the Companies Act, 2013, as amended, and other applicable provisions (the process hereinafter referred to as the "Buyback").

Salient financial parameters:

Particulars (in Cr.)

 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Sales 367 458 505 845 956 1,406 2,022
Expenses 288 375 433 758 855 1,231 1,783
Operating Profit 80 82 72 87 101 175 239
OPM % 22% 18% 14% 10% 11% 12% 12%
Other Income 4 5 5 8 -3 16 0
Interest 1 1 7 12 6 4 5
Depreciation 3 5 12 17 23 26 38
Profit before tax 80 81 57 65 69 162 195
Tax % 22% 25% 17% 15% 16% 18% 13%
Net Profit 63 61 49 57 58 133 166
EPS in Rs - - - - - 23.1 26.36
Dividend Payout % 35% 0% 15% 13% 13% 9% 19%
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How to Participate in buyback?

In this method of share Buyback, the company will be purchasing stocks from existing shareholders of the company directly from the market. Example: “Route Mobile Buyback 2022 ” announces buyback plan of its shares up to value of Rs 1700, it means that the company will be purchasing shares of "Route Mobile Buyback 2022 " from the open market at a price not exceeding Rs.1700 per share. Scenario 1- If the share price is below Rs. 1700 in that case, the company will put buy order at Current Market Price and purchase shares. Scenario 2- If the share price is above Rs. 1700, in that case, the company will put buy order at Rs. 1700 only and if someone is ready to sell at Rs.1700 or less then only company will get back shares.

Profit from the buyback on the bases of acceptance Ratio:

No arbitrage as it is open market buyback.

Recommendation:

No arbitrage as it is open market buyback.

6 Comments

    It appears that good tender buyback offers would take some time. I feel that market Buyback are absolutely useless untill a very large equity in terms of 20-30% is not bought. 2-3% make no difference.

    Reply

      Sumit ji,
      I too believe that the fruitful era of the Buybacks has gone. I understand that the number of investors in this regard have been increased in multiple folds resulting in low ARs to the reasonable extent.

      Reply

      Yes sir, I do agree with you. I have made good profits in buy back. But the latest in which I have participated Star Cement & Nucleus Software, I am at a considerable loss. However, I am still holdding the unaccepted shares of both. We should take a break for sometime so far as buyback is concerned.

      Reply

    Sir,
    Let us hope that at least the buyback of SIS will be through the Tender Offer.

    Reply

      Sir,
      Let us hope that at least the buyback of SIS will be through the Tender Offer.

      Reply

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