As per the latest reports, the Mumbai board on Tuesday finally supports the decision to buyback the shares with the face value of Rs 10 in the open market of the Bombay Stock Exchange.
You must be wondering what exactly is Route Mobile?
Route Mobile was launched in 2004, with the head office located in Mumbai having a global presence is software used for cloud communication service provider delivering communication as CPaaS solutions. Mr. Rajdip Gupta is the managing director as well as CEO who is here to provide a seamless experience and boost customer engagement by providing all the preferred channels at a single location. It was launched with a motive to boost communication needs.
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Route Mobile fell up to 7% on the Bombay Stock Exchange after the Board finally agrees to the buyback. According to the reports which state that the buyback of shares does not include the promoters, promoter groups, and the persons who are in control of the Company. The company also supports the buyback of shares with a price not surpassing Rs 1700 per equity share and the complete amount not exceeding Rs 120 crore. Not just this, the stock fell 2.62% on Tuesday as well whereas the total trading came out to be Rs 1328.70. Route Mobile is there for enterprises like (OTT) players, and (MNO) comprising solutions in messaging, voice, email, SMS filtering, analytics, and monetization.
The buyback was to be done in an ‘Open Market’ and is paid in the form of cash by using the Stock Exchange as a means of tool. In an open market buyback, the business buys back shares from the market immediately at the standard price. A share buyback program's primary plan is to eliminate the value of a stock from declining by diminishing the company's supply, which eventually impacts the share price through a higher price-to-earnings (P/E) ratio.
When talking about the bounce-back rate, the stock bounced back by 24 percent and the level was low from the past 52 weeks after the approval from the Board regarding the share buyback. The share also touched its 52-week high of Rs 2388.10 on October 12 2021 and a 52-week low of Rs 1052.60 on 23 June 2022 before it went through the process of buyback. As per the reports it is now trading at 47% below its 52-week high and 20% above its 52-week low. Visit Hare:
The court agreed upon the formation of a buyback committee, the Board even approved of that and even delegated its ability to accomplish all the necessary duties and acts. Not just this, the board also approved the appointment of Rathindra Das, Chief Legal Officer, Company Secretary, and Compliance Officer for the buyback.