Rapid Fleet Management Services, a prominent Chennai-based logistics company, is set to offer its initial public offering (IPO) to raise ₹43.86 Crores. The company specializes in providing tailored logistics solutions for both B2B and B2C sectors, focusing on road transportation. The IPO comprises a fresh issue of 22.84 lakh equity shares, with a price band set between ₹183 and ₹192 per share. The company is looking to list on the NSE SME platform, with a tentative listing date of March 28, 2025.

Subscription Period & Allotment Details

The IPO subscription will open on March 21, 2025, and close on March 25, 2025. The allotment of shares will be finalized on March 26, 2025, with the shares expected to list on March 28, 2025. The lot size for retail investors is 600 shares, meaning that a minimum investment of ₹1,15,200 is required, while high-net-worth individuals (HNIs) are required to invest a minimum of ₹2,30,400 for two lots (1,200 shares).

Financial Overview & Key Metrics

Rapid Fleet Management Services has shown impressive growth in its financial performance over the past few years. In the fiscal year ending September 30, 2024, the company reported revenue from operations of ₹8,739.41 Lakh. This represents a steady upward trajectory compared to previous years, with EBITDA of ₹1,385.39 Lakh and a Profit After Tax (PAT) of ₹701.34 Lakh for the same period.

Key financial indicators include:

• Pre-Issue EPS (Earnings Per Share): ₹16.14

• Post-Issue EPS: ₹10.86

• Pre-Issue P/E Ratio: 11.90x

• Post-Issue P/E Ratio: 17.68x

• ROCE (Return on Capital Employed): 32.59%

• ROE (Return on Equity): 50.09%

These ratios indicate that the IPO is fairly priced compared to the industry average, with the company's performance showing promising growth potential.

Grey Market Premium (GMP) and Subscription Status

The Grey Market Premium (GMP) of Rapid Fleet Management Services IPO currently stands at ₹28, which reflects a 14.58% premium based on the expected listing price of ₹192. This suggests potential gains for investors post-listing. However, investors are advised to consider the inherent risks of investing based on GMP, as it is driven by unorganized market forces and does not always reflect the true value of the stock.

As of March 25, 2025, the IPO has been subscribed 1.49 times, indicating a strong investor interest in the issue. This marks a positive outlook for the IPO as it moves toward the allotment phase.

Objectives of the IPO

The funds raised from the IPO will be utilized for the following purposes:

• Purchase of Vehicles (Goods Carriages): ₹1,302.37 Lakhs

• Working Capital Requirements: ₹3,678.30 Lakhs

• General Corporate Purposes

Promoters and Management

The company is led by Mr. Anand Poddar and Ms. Shruti Poddar, who bring extensive experience in logistics and supply chain management. Mr. Anand Poddar has over 16 years of expertise in supply chain optimization, while Ms. Shruti Poddar has six years of experience in the field, ensuring the company’s strong leadership in the competitive logistics industry.

Risk Factors & Investment Recommendation

Given the company's steady financial performance and relatively attractive valuation, the IPO is considered fairly priced. The GMP of ₹28 suggests potential listing gains, but investors should be mindful of the inherent risks associated with investing in the grey market. Therefore, it is recommended that risk-tolerant investors consider applying for the IPO with a focus on potential listing gains.

Overall, Rapid Fleet Management Services IPO presents a solid opportunity for those looking to invest in the growing logistics sector, but as with all investments, careful consideration of market conditions and personal risk appetite is essential.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Infonative Solutions Limited,Spinaroo Commercial Limited,Aten Papers & Foam Limited.

The Current active IPO are Retaggio Industries Limited,Identixweb Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

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