The Rapid Fleet Management Services IPO presents an exciting opportunity for investors in the logistics sector. The Chennai-based company, known for its tailored road transportation solutions for both B2B and B2C clients, is offering 22.84 Lakh shares in a Fresh Issue valued at ₹43.86 Crores. The subscription period for the IPO opened on March 21, 2025, and will close on March 25, 2025. The allotment date is set for March 26, 2025, with the shares expected to list on the NSE SME on March 28, 2025.

The price range for the IPO is set between ₹183 to ₹192 per equity share, with a market capitalization of ₹142.74 Crores at the upper price band. Investors can apply for a minimum of 600 shares (₹1,15,200) for retail investors, while High-Net-Worth Individuals (HNIs) are required to apply for a minimum of 2 lots, totaling ₹2,30,400.

The Grey Market Premium (GMP) for the Rapid Fleet Management Services IPO is currently ₹28, indicating a potential listing gain of 14.58% based on the financials of the company. However, it’s important to note that GMP is an informal, unregulated market indicator and does not guarantee the listing price. As of March 21, 2025, the IPO has been subscribed 0.05 times on the first day, suggesting moderate interest.

The company’s financial performance has been consistently strong, with revenues from operations of ₹8,739.41 Lakh for FY24. The EBITDA stands at ₹1,385.39 Lakh, while the Profit After Tax (PAT) for the same period is ₹701.34 Lakh, reflecting healthy profitability. The company’s pre-issue EPS is ₹16.14, with a P/E ratio of 11.90x, which is fairly priced relative to its industry peers.

The company is led by Mr. Anand Poddar, who brings over 16 years of experience in supply chain management, and Ms. Shruti Poddar, with 6 years of experience in logistics. Their leadership, combined with strong financial metrics, makes the IPO an appealing option for investors.

Objectives of the IPO: The net proceeds from the IPO will be utilized for the following purposes:

• ₹1,302.37 Lakhs for the purchase of vehicles (goods carriages)

• ₹3,678.30 Lakhs for working capital requirements

• General corporate purposes.

The IPO review suggests that this is a fairly priced offering, with strong financials and a solid track record. Risk-tolerant investors may consider applying for the IPO to capitalize on listing gains. The company’s key metrics—including an ROCE of 32.59% and ROE of 50.09% for FY24—show strong returns on capital, adding to the investment appeal.

In conclusion, the Rapid Fleet Management Services IPO presents a promising investment opportunity in the growing logistics sector. With an attractive price range, a solid business model, and good financial health, the IPO is worth considering, especially for investors looking for listing gains.

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

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

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