Messaging and voice interface company Route SMS expects to raise Rs 500 crore from an initial public offering it plans to launch around October and spend most of the proceeds on acquisitions. Founder Rajdip C Gupta told ET that he is open to diluting 25-30% stake through the IPO, which is being handled by YES Bank along with Kotak Mahindra Bank. The company is yet to file its draft prospectus with the Securities & Exchange Board of India. Route SMS will go on a “string of pearls” acquisition mode, on which it will spend Rs 400 crore to beef up its technology and cross-selling options, Gupta said. It would like to acquire a differentiator such as a payments company, possibly a wallet that it could sell to its customers, he said. Route SMS counts 10 major banks among its clients as it pushes one-time passwords and alert messaging for them. The company’s IPO plans come at a time when the primary market has revived, with 21 offerings raising Rs 13,600 crore after a long gap. Market experts expect easing of liquidity from global central banks to make funds available to public offerings this year.