Route Mobile, a cloud communications platform provider, experienced a significant drop in its share price after reaching a 52-week high. The stock initially soared to Rs 1,759.50 following the announcement of Belgium-based telecom service provider Proximus Group acquiring a majority stake in the company. However, it later plummeted by 16.25% to reach a low of Rs 1,473.60.
Proximus will purchase a 57.56% stake in Route Mobile for Rs 5,922.40 crore, triggering a mandatory takeover offer for up to 26% of the company's outstanding shares. Depending on the outcome, Proximus could increase its stake to approximately 75%. The acquisition will be followed by a reinvestment by some of Route Mobile's founding shareholders.
The trading volume of Route Mobile shares on the BSE was significantly higher than the average, with a turnover of Rs 28.48 crore. The stock's relative strength index (RSI) stood at 40.49, indicating a slightly oversold condition. The company's stock has high P/E ratio (112.95) and a P/B value (9.01). It has a one-year beta of 0.80, indicating relatively low volatility.
While Route Mobile's share price experienced a decline, the overall Indian equity market reached new all-time highs, with the BSE Sensex and NSE Nifty hitting fresh records. The Sensex rose over 350 points to reach 66,435, while the Nifty surged nearly 100 points to scale 19,674.