Route Mobile Promoter To Sell 6.03% Stake Via Offer For Sale

Proximus Opal, the promoter of Route Mobile, has announced plans to sell up to 3.8 million equity shares, representing a 6.03% stake in the company, through an Offer for Sale (OFS). The two-day sale, set to take place on September 12 and 13, will be conducted via the Bombay Stock Exchange (BSE) as per an exchange filing. The floor price has been set at Rs.1,635 per share.

How the Sale is Structured

On September 12, non-retail investors can bid for shares, while retail and non-retail investors can submit their bids for any unallotted shares on September 13. The OFS allows non-retail investors to bid on the first day, with the option to carry forward their unallotted bids to the second day. At least 25% of the shares have been reserved for mutual funds and insurance companies, while 10% is set aside for retail investors which ensures a broad range of participants, from institutional players to smaller retail investors.

Proximus Opal’s Position

Proximus Opal had originally picked up an 83.1% stake in Route Mobile in May 2024. While the OFS will trim its holding, it’ll still maintain a strong presence in the company. The sale is part of plans to meet minimum public shareholding rules.

What This Means for Route Mobile’s Stock

Ahead of the OFS announcement, Route Mobile’s shares closed at Rs.1,638.90 on the NSE, up 0.7%. The stock has been showing a difference, with around 2% down year-to-date and over 5% rise over the past year. The sale is likely to impact the stock price and impact the company’s shareholding structure a bit.

Conclusion: With its structured approach and reserved portions for different types of investors, the OFS is expected to draw interest. Investors will be keeping a close eye on how Route Mobile’s stock reacts in the days following the sale, as this event could shape the company’s near-term market performance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.