Rapid Fleet Management Services Limited, based in Chennai, is a leading provider of logistics services, primarily focusing on road transportation. Serving both B2B and B2C clients, the company is involved in the entire logistics process, from order booking to route planning, ensuring the safe and efficient delivery of goods. The company's fleet is monitored in real-time using GPS, FAST-TAG SIM TRACKING, and advanced navigation systems, providing clients with continuous updates throughout the transit.

The company is now gearing up for its IPO to raise ₹43.86 Crores via the issuance of 22.84 Lakh shares. The IPO, which will be listed on the NSE SME, has a price band of ₹183 to ₹192 per equity share, and the market capitalization at the upper price band stands at ₹142.74 Crores. The subscription period for the IPO began on March 21, 2025, and is set to close on March 25, 2025. The allotment date is expected on March 26, 2025, with shares listed on the NSE SME by March 28, 2025.

Financial Overview and Key Metrics

For the period ending on September 30, 2024, Rapid Fleet Management Services showed substantial financial growth. The company reported revenues from operations of ₹8,739.41 Lakh for FY2024, with EBITDA of ₹1,385.39 Lakh and a Profit after Tax (PAT) of ₹701.34 Lakh. This indicates steady growth in the company’s operations.

For FY2024, the pre-issue EPS stands at ₹16.14, with the post-issue EPS expected to be ₹10.86. The P/E ratio is 11.90x pre-issue and 17.68x post-issue, suggesting the IPO is priced reasonably compared to the industry average. With a ROCE of 32.59%, a ROE of 50.09%, and a RoNW of 40.06%, the financials show strong profitability and return potential for investors.

IPO Subscription and Grey Market Premium (GMP)

As of March 25, 2025, the Rapid Fleet Management Services IPO was subscribed 1.49 times on the final day of its subscription period, indicating strong investor interest.

The Grey Market Premium (GMP) for the IPO is currently ₹28, reflecting a potential listing gain of 14.58% at the upper price band. It is important to note that the GMP reflects unorganized market trading and is used purely for educational purposes, not for real price discovery.

Lot Size and Investment Details

• Retail Investors must apply for a minimum of 600 shares, amounting to ₹1,15,200.

• High Net-Worth Individuals (HNIs) must apply for a minimum of 2 lots (1,200 shares), totaling ₹2,30,400.

The book running lead manager for the IPO is Gretex Corporate Services Limited, while Bigshare Services Private Limited acts as the registrar. MLB Stock Broking Private Limited is the market maker.

Objectives of the IPO

The funds raised through the IPO will be used for the following objectives:

1. Purchase of Vehicles: ₹1,302.37 Lakhs will be allocated for the purchase of goods carriages (vehicles).

2. Working Capital Requirements: ₹3,678.30 Lakhs will be used to meet the company's working capital needs.

3. General Corporate Purposes: The remaining funds will be utilized for general corporate purposes.

Company Leadership

The company is led by two highly experienced promoters:

• Mr. Anand Poddar, with more than 16 years of experience in supply chain management and strategic planning.

• Ms. Shruti Poddar, who has over 6 years of experience in logistics and supply chain management.

Conclusion and Recommendations

With a strong financial background and the growing demand for logistics services, Rapid Fleet Management Services presents an appealing opportunity for investors. The GMP and P/E ratio suggest potential listing gains, though the company is priced reasonably based on its financial health.

For risky investors, the IPO is worth considering for listing gains. However, those looking for long-term stability should evaluate the company's growth potential and its performance in the logistics industry.

Investors should monitor the allotment status on March 26, 2025, and keep an eye on the listing date for further developments.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Identixweb Limited, Retaggio Industries Limited, Infonative Solutions Limited.

The Current active IPO are ATC Energies System Limited, Shri Ahimsa Naturals Limited, Desco Infratech Limited, Rapid Fleet Management Services, Active Infrastructures Limited.

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