Route Mobile Ltd shares jumped 7% to hit a record high after the company proclaimed in a notice that the promoters would sell their entire shareholding.

The firm said its promoter would sell the entire holding of 36.41 million shares or 57.16% stake at an average price of Rs 1626.40 to Proximus Opal SA. The deal is treasured at Rs 5922.41 crore. Proximus will also make a 26% open offer at the same price.

As part of the agreement, some founding shareholders of Route Mobile will participate in Euro 299.60 million in Proximus Opal for up to 14.5% stake.

The stock hit a high of Rs 1746 a share and gained 7.5% intraday. At 9.30 am, the stock was trading at Rs 1743 on BSE, up 7.3% from its earlier close.

The firm was listed in September 2020 and raised Rs 600 crore via IPO. The price band was fixed at Rs 350 a share. Since listing, the stock surged over 400%.

For FY23, the firm reported Rs 3569.20 crore revenue, up 78.3% against Rs 2002 crore a year ago. Net profit for the fiscal year was Rs 333.10 crore, up 96% compared to Rs 170.1 crore last year. EBITDA margin was at 12.5% during the year from 10.9% in FY22. Total debt for the fiscal was Rs 106.15 crore against nil last year.

The company guided 20% organic growth in FY23. The management tinted the positive impetus with major banks in India and Africa, selecting e-commerce customers. They also noted a significant 25% rise in ILD (International Long Distance) message prices in India during April and expected additional revenue from secured firewall contracts in recent quarters.

The company’s management is optimistic about its market position in India and projects growth from 20% to around 25% in FY24. Furthermore, the company expects important growth in Africa, with the onboarding of two major banks in Ghana and Nigeria and the Middle East and LATAM regions.

The management acknowledged that the regulated cash flow from operations (CFO) to EBITDA ratio for FY23 stood at 45%, slightly below their guidance. Nevertheless, their commitment is to achieve a normalized conversion rate of 50-75% in FY24.