The Rapid Fleet Management Services Limited IPO has garnered attention as it opens for subscription on March 21, 2025. This book-built issue seeks to raise ₹ 43.86 Crores, with an offer size of 22.84 Lakh shares. The subscription period will close on March 25, 2025, and the allotment date is set for March 26, 2025, with shares expected to list on the NSE SME platform on March 28, 2025.

The price band for the IPO is ₹183 to ₹192 per equity share, which will give Rapid Fleet Management Services a market capitalization of ₹142.74 Crores at the upper price band. The IPO's lot size is set at 600 shares, requiring a minimum investment of ₹ 1,15,200 for retail investors. For High-Net-Worth Individuals (HNIs), the minimum investment stands at ₹ 2,30,400 for 2 lots (1,200 shares).

The company provides logistics services primarily focused on road transportation for both B2B and B2C clients. The process includes order booking, route planning, cargo matching, and secure loading and unloading. GPS, FAST-TAG SIM TRACKING, and navigation systems ensure real-time tracking and monitoring of every shipment, providing transparency to clients and ensuring safe transit.

As of March 21, 2025, the Grey Market Premium (GMP) stands at ₹58, reflecting an expected 30% listing gain. The GMP, however, is based on demand and supply in the unorganized market and should not be considered a guaranteed indicator of actual performance post-listing. The GMP is provided for informational purposes only.

The subscription status for the IPO on its first day of the subscription period indicates a 0.02 times subscription rate as of 11:00 AM. Given that this is an early stage, these numbers can fluctuate significantly over the next few days. The allotment date is confirmed as March 26, 2025, and investors can check their allotment status on the registrar's website by entering their application number, PAN, or DP Client ID.

The objectives of the IPO include:

1. ₹ 1,302.37 Lakhs for the purchase of goods carriages (vehicles).
2. ₹ 3,678.30 Lakhs for working capital requirements.
3. Use of funds for general corporate purposes.

The financial performance of Rapid Fleet Management Services shows strong growth, with revenues from operations for FY24 reaching ₹8,739.41 Lakh. The EBITDA for FY24 stands at ₹1,385.39 Lakh, and Profit After Tax (PAT) is ₹701.34 Lakh, reflecting steady growth in the company’s financials.

The pre-issue EPS for FY24 is ₹16.14, while the post-issue EPS is ₹10.86. With a P/E ratio of 11.90x pre-issue and 17.68x post-issue, the valuation seems attractive in comparison to industry peers. The ROCE for FY24 is 32.59%, and the ROE stands at 50.09%, reflecting strong capital utilization and profitability.

IPO Review and Conclusion: With a promising financial performance, strong return ratios, and an expected listing gain based on GMP, the Rapid Fleet Management Services IPO appears to be an attractive investment opportunity for risk-seeking investors. Investors should consider applying for this IPO, especially those looking for potential listing gains in the logistics sector. The company’s solid track record in logistics and its growth potential make it a noteworthy option, although market fluctuations may affect final performance.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Desco Infratech Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

The Current active IPO are Rapid Fleet Management Services, Active Infrastructures Limited,Grand Continental Hotels.

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