Rapid Fleet Management Services Limited, a Chennai-based company, is launching its Initial Public Offering (IPO), offering a book-built issue of ₹43.86 crores, consisting entirely of a fresh issue of 22.84 lakh shares. The subscription period opens on March 21, 2025, and closes on March 25, 2025. The IPO price band is set at ₹183 to ₹192 per equity share, and the company's shares are expected to be listed on NSE SME with a tentative listing date of March 28, 2025.

Company Overview and Services

Rapid Fleet Management Services Limited provides logistics solutions tailored for B2B and B2C clients, specializing in road transportation. Their process begins with order booking, followed by route planning for optimal efficiency. Each shipment is matched with an appropriate vehicle based on the nature of the cargo to ensure safe and secure transit. Goods are loaded from designated points or warehouses and secured for the journey.

The company uses GPS, FAST-TAG, and SIM TRACKING navigation systems to monitor every movement, offering real-time updates to clients. This technological edge ensures high customer satisfaction and operational transparency.

IPO Details and Subscription Period

The Rapid Fleet Management Services IPO will be open for subscription from March 21, 2025, to March 25, 2025. The allotment date is expected on March 26, 2025, and the shares are likely to be listed on NSE SME on March 28, 2025.

• Lot Size: 600 shares
• Retail Investors Minimum Investment: ₹1,15,200 for 1 lot
• HNI Minimum Investment: ₹2,30,400 for 2 lots (1,200 shares)
• Market Capitalization at IPO Price: ₹142.74 crores at the upper price band of ₹192

Financial Performance Overview

The company's revenues and profitability have shown consistent growth over the years. The details are as follows:

• Revenue from Operations: ₹8,739.41 Lakh (as of Sep 30, 2024), ₹11,632.15 Lakh (FY 2024), ₹10,602.58 Lakh (FY 2023), and ₹11,402.23 Lakh (FY 2022)
• EBITDA: ₹1,385.39 Lakh (as of Sep 30, 2024), ₹1,770.49 Lakh (FY 2024), ₹1,263.57 Lakh (FY 2023), and ₹904.69 Lakh (FY 2022)
• Profit after Tax (PAT): ₹701.34 Lakh (as of Sep 30, 2024), ₹807.19 Lakh (FY 2024), ₹471.34 Lakh (FY 2023), and ₹339.59 Lakh (FY 2022)

Key Financial Ratios and Valuation

The company's financial indicators highlight a strong performance:

• Pre-Issue EPS (FY24): ₹16.14
• Post-Issue EPS (FY24): ₹10.86
• Pre-Issue P/E Ratio: 11.90x
• Post-Issue P/E Ratio: 17.68x
• ROCE (FY24): 32.59%
• ROE (FY24): 50.09%
• RoNW: 40.06%
• Annualized EPS (FY24): ₹27.58
• PE Ratio: 6.96x

These metrics suggest that the IPO valuation is reasonable based on the company’s growth trajectory and financial performance.

Objectives of the IPO and Fund Utilization

The net proceeds from the Rapid Fleet Management Services IPO will be utilized for:

1. ₹1,302.37 lakh for the purchase of vehicles (goods carriages) to expand the company’s logistics capacity.
2. ₹3,678.30 lakh for working capital requirements to support operational growth.
3. Remaining proceeds for general corporate purposes.

Company Leadership and Promoters

Rapid Fleet Management Services Limited is led by experienced promoters:

• Mr. Anand Poddar: Promoter with 16 years of expertise in supply chain management, strategic planning, and process optimization.
• Ms. Shruti Poddar: Promoter with 6 years of experience in logistics and supply chain management.

Grey Market Premium (GMP) and Expected Listing Gains

The Grey Market Premium (GMP) of Rapid Fleet Management Services IPO is reported at ₹58, indicating a potential listing gain of approximately 30% over the upper price band of ₹192. However, it is essential to note that GMP trends are purely indicative and depend on supply-demand factors in the unregulated grey market.

Day-wise GMP Trend:

• 18 March 2025: GMP ₹58 (30% expected listing gain)
• 17 March 2025: GMP ₹0 (No change)

How to Check IPO Allotment Status

The allotment status for Rapid Fleet Management Services IPO will be available on March 26, 2025. Investors can check their allotment status by following these steps:

• Go to the IPO allotment status page of the registrar's website.
• Select Rapid Fleet Management Services Limited IPO from the dropdown.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to view your allotment status.

IPO Review and Recommendation

Rapid Fleet Management Services Limited IPO is positioned well in the growing logistics sector, offering tailored solutions with advanced real-time tracking and route optimization technologies. The company has shown a steady financial performance and strong return ratios, making it an attractive investment opportunity.

Risk Factors and Considerations

Potential investors should be aware of the following risks:

• Dependence on road transportation exposes the company to fuel price volatility and regulatory changes.
• Competition in the logistics sector could impact market share and pricing power.
• Potential delays in expansion plans could affect future growth prospects.

Conclusion

Rapid Fleet Management Services Limited IPO offers an opportunity for risk-tolerant investors seeking listing gains. The company’s strong financial performance, technological advancements, and growth trajectory indicate that the IPO is fairly valued. However, investors are advised to evaluate the risks before making a final decision.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Grand Continental Hotels, Rapid Fleet Management Services, Active Infrastructures Limited, Desco Infratech Limited.

The Current active IPO are Paradeep Parivahan, Divine Hira Jewellers.

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