The Rapid Fleet Management Services IPO offers an exciting investment opportunity for individuals interested in the logistics and transportation industry. The company, based in Chennai, provides road transportation services to a broad range of B2B and B2C clients. Their services ensure the safe and efficient transit of goods through meticulous route planning, vehicle matching, and real-time tracking using cutting-edge GPS technology and FAST-TAG SIM tracking systems.

This book-built issue is aimed at raising ₹ 43.86 Crores, which will be utilized to meet the company's expansion needs, including the purchase of vehicles and working capital requirements. The IPO consists of a fresh issue of 22.84 lakh shares, with a share price band set between ₹ 183 to ₹ 192 per equity share. The IPO will be open for subscription from March 21, 2025, to March 25, 2025, and the shares are expected to be listed on the NSE SME on March 28, 2025.

Key Financial Metrics:

• Market Capitalization: ₹ 142.74 Crores at the upper price band of ₹ 192.

• Lot Size: Investors can bid in lots of 600 shares.

  • Retail Investors: The minimum investment required is ₹ 1,15,200 for 600 shares.

  • HNIs: The minimum investment for High-Net-Worth Individuals is ₹ 2,30,400 for 1,200 shares.

Grey Market Premium (GMP):

As of March 25, 2025, the Grey Market Premium (GMP) of Rapid Fleet Management Services IPO is ₹ 28, which reflects a 14.58% potential listing gain based on the current market performance. However, it is important to note that Grey Market Premium is not a reliable indicator and fluctuates based on demand and supply dynamics in the unofficial market.

Subscription Status:

The live subscription status for the IPO as of 10:30 AM, March 25, 2025 shows the issue is subscribed 0.59 times. Investors can track the IPO's live subscription progress at the NSE SME platform to assess the demand and make informed investment decisions.

Allotment Status:

The IPO allotment date is set for March 26, 2025. To check the allotment status:

1. Visit the Registrar's Website.

2. Select Rapid Fleet Management Services Limited IPO from the list of IPOs.

3. Enter your application number, PAN, or DP Client ID and submit the details to check the allotment status.

Financial Performance:

For the fiscal years ended 2022-2024, the company has shown strong revenue and profit growth:

• Revenues for FY 2024: ₹ 8,739.41 Lakh.

• EBITDA for FY 2024: ₹ 1,385.39 Lakh.

• Profit After Tax for FY 2024: ₹ 701.34 Lakh. The company’s Return on Equity (ROE) for FY 2024 stands at 50.09%, showcasing a strong financial performance.

IPO Review:

The pre-issue earnings per share (EPS) of the company stands at ₹ 16.14, with a post-issue EPS of ₹ 10.86. The price-to-earnings (P/E) ratio is 11.90x before the issue and 17.68x post-issue, indicating a fairly priced IPO compared to industry standards. The annualized EPS is ₹ 27.58, and the P/E ratio is 6.96x, which further supports the fair pricing of the issue.

Investment Recommendation:

Based on the company’s growth trajectory, solid financials, and the GMP trend, we recommend Risky Investors to apply for the IPO for potential listing gains. However, as with any investment, it is important to carefully assess the risks and rewards before proceeding.

Conclusion: The Rapid Fleet Management Services IPO presents a compelling investment opportunity for those looking to invest in the fast-growing logistics sector. Investors should follow the subscription process, monitor live updates, and use the information provided to make an informed decision on their participation in this offering.

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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