Why is Route Mobile looking to raise Rs.2,000 crore?

Telecom enterprise solutions provider, Route Mobile, has just secured shareholders’ approval to raise a total sum of Rs.2,000 crore via sale of securities. This is most likely to be raised in tranches and a blanket approval has already been taken from the board. During the meeting, a majority of shareholders also approved the increase in limit of foreign portfolio investments into Route Mobile, considering the enhanced interest among QIBs.

The vote to raise funding of Rs.2,000 crore was passed with nearly 95% voting in favour of the move. However, it has been reported that one-fourth of the public institutional shareholders who participated in the voting, actually voted against the fund raising proposal, although it did not impact the final outcome. The vote was less split on the FPI stake with nearly 99% of the votes clearly favouring for enhanced FPI investment in Route.