Route Mobile has announced share buyback, after which a good rally is being seen in the stock since 2 days. The stock rose 26 percent to Rs 1329 in 2 days.
Route Mobile Share Price: Even today, shares of Route Mobile, a cloud communications platform service provider company, are seeing great growth. Today the stock gained more than 11 percent and reached a price of Rs 1329. The stock had touched its 18-month low of Rs 1052 on June 23 i.e. on Thursday itself. That is, within 2 days from the low of 18 months, the stock has gained 26 percent. It has not even been 2 years since the stock was listed and during this time there has been a trend of huge fluctuations in it. Although overall still this stock has proved to be a multibagger for the investors. Since its listing, it has given a return of 270 per cent over the issue price.
Why did the stock suddenly rise
Route Mobile has announced share buyback, after which a good rally is being seen in the stock since 2 days. In 2 days, the stock has increased by 26 percent from Rs 1052 to Rs 1329. The company is going to have a meeting on June 28, in which buyback of fully paid up equity shares of the company will be considered. Route Mobile has given this information to the stock exchange. The motive behind this buyback plan loan is to reduce the supply of stock and prevent the fall in it. This will improve the Price to Earnings (P/E) multiple and strengthen the stock.
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Wealth halved after giving 582% return
The share of Route Mobile was listed in the stock market on 21 September 2020. The issue price under the IPO was Rs 350, while the shares were listed at Rs 708 with a premium of over 100 per cent. On listing day, the stock closed at Rs 651 with a premium of 86 per cent. On 12 October 2021, the stock touched a level of Rs 2388. That is, in less than 13 months, the stock has strengthened 582 percent from its issue price.
However, after that the stock declined and on 23 June 2022, the stock touched a low level of 1052. That is, it has declined by about 56 percent from the high of 1 year. In this sense, the share price was reduced to less than half. Now the rally has started once again in the stock.