Rapid Fleet IPO: Price, Allotment Details, and Expert Analysis You Need to Know

Rapid Fleet is set to launch its Initial Public Offering (IPO) on March 21, 2025, with the issue scheduled to close on March 25, 2025. The IPO will be a Book Built Issue, aiming to raise approximately ₹43.87 crores. This total comprises a fresh issue of shares worth ₹43.87 crores, while the offer for sale (OFS) details, including the number of equity shares to be sold by existing shareholders, are yet to be disclosed. The face value of each share is ₹10.

IPO Price Band and Investor Quotas

The price band for the Rapid Fleet IPO has been set between ₹183 to ₹192 per share. The company has reserved specific quotas for different categories of investors:

• Retail Investors – 35% of the total offering

• Qualified Institutional Buyers (QIBs) – 50% of the total offering

• High Net-Worth Individuals (HNIs) – 15% of the total offering

Listing and Allotment Dates

The basis of allotment for the IPO is expected to be finalized on March 26, 2025. Investors can expect the listing of Rapid Fleet’s shares on the National Stock Exchange (NSE) on March 28, 2025.

Financial Performance Overview

Rapid Fleet has demonstrated consistent growth in recent years. The company reported a revenue of ₹116.32 crores in the financial year 2024, reflecting an increase from ₹106.03 crores in 2023. Similarly, the company’s profitability improved significantly, with a profit of ₹8.07 crores in 2024 compared to ₹4.71 crores in 2023.

IPO Outlook

Given the company’s solid financial performance and strategic growth plans, the Rapid Fleet IPO has garnered attention from investors. The funds raised through the IPO are expected to be used for business expansion, working capital requirements, and general corporate purposes.

Rapid Fleet IPO Market Lot and Application Details

The minimum market lot for the Rapid Fleet IPO has been set at 600 shares. This means that investors looking to participate in the IPO will need to apply for at least 600 shares, which amounts to a minimum investment of ₹1,15,200 based on the upper end of the price band at ₹192 per share.

Application Details and Investment Limits

The IPO application structure is categorized based on the type of investor:

1. Retail Investors

• Minimum Application: Retail investors are required to apply for a minimum of 1 lot, which includes 600 shares.

• Investment Amount: At the price band’s upper limit of ₹192 per share, the minimum investment comes to ₹1,15,200.

• Maximum Application: Retail investors can apply for a maximum of 1 lot (600 shares) amounting to ₹1,15,200.

2. Small High Net-Worth Individuals (S-HNIs)

• Minimum Application: S-HNIs are required to apply for at least 2 lots, which amounts to 1,200 shares.

• Investment Amount: At the upper price band of ₹192 per share, the minimum investment for S-HNIs would be ₹2,30,400.

Since the retail investor limit is capped at ₹2,00,000, those applying for more than one lot would automatically fall into the S-HNI category. Investors need to ensure that they have sufficient funds in their bank accounts to cover the application amount during the IPO subscription period.

 

Rapid Fleet IPO: Key Details and Offer Structure

The Rapid Fleet IPO is set to open for subscription on March 21, 2025, and will close on March 25, 2025. The IPO is being launched as a Book Built Issue, which means the final price will be determined based on investor demand within the specified price band. The company plans to raise approximately ₹43.87 crores through the offering.

IPO Structure and Financial Details

• Face Value: Each equity share of the IPO will have a face value of ₹10.

• Price Band: The IPO price band has been set between ₹183 and ₹192 per share. The final offer price will be decided after analyzing investor demand during the book-building process.

• Issue Size: The total issue size is approximately ₹43.87 crores, consisting entirely of a fresh issue of shares amounting to ₹43.87 crores. The fresh issue proceeds are expected to be used for business expansion, working capital, and general corporate purposes.

Investor Quotas and Allocation

The offering has been structured to accommodate different types of investors, with specific quotas allocated as follows:

• Retail Quota: Not more than 35% of the total offering has been allocated to retail investors.

• Qualified Institutional Buyers (QIB) Quota: Not more than 50% of the total issue has been reserved for QIBs, including mutual funds, banks, and other financial institutions.

• Non-Institutional Investors (NII) or High Net-Worth Individuals (HNI) Quota: Not more than 15% of the total offering is reserved for HNIs.

Listing Plans

The shares of Rapid Fleet are scheduled to be listed on the NSE SME (Small and Medium Enterprise) platform after the completion of the IPO process. The listing is expected to take place on March 28, 2025.

This IPO marks an important step for Rapid Fleet as it seeks to strengthen its market position and fund future growth initiatives.

 

Rapid Fleet IPO Timeline and Key Dates

The Rapid Fleet IPO is scheduled to open for public subscription on March 21, 2025, and will remain open for bidding until March 25, 2025. Investors will have five days to participate in the offering during the subscription window. Below is a detailed timeline of the key dates related to the IPO process:

1. IPO Open and Close Dates

• IPO Opening Date: The Rapid Fleet IPO will open on March 21, 2025. Investors can start placing their bids from this date.

• IPO Closing Date: The IPO will close on March 25, 2025. After this date, no further applications will be accepted.

2. Basis of Allotment

• The basis of allotment, which determines how shares are distributed among applicants, will be finalized on March 26, 2025. This step will confirm which applicants have been allotted shares and how many they have received based on the subscription demand.

3. Refund Process

• For applicants who do not receive a full or partial allotment, the refund process will begin on March 27, 2025. The funds will be credited back to the bank accounts linked to the IPO application.

4. Credit of Shares to Demat Accounts

• Successful applicants will have their allotted shares credited to their Demat accounts on March 27, 2025. This ensures that the shares are available for trading upon listing.

5. IPO Listing Date

• The shares of Rapid Fleet are scheduled to be listed on the National Stock Exchange (NSE) SME platform on March 28, 2025. From this date, the shares will be available for trading on the exchange.

This structured timeline reflects the key milestones in the Rapid Fleet IPO process, providing a clear overview of when investors can expect allotment updates, refunds, and listing details.

 

 

Rapid Fleet IPO Financial Report and Valuation Overview

Financial Performance Overview

Rapid Fleet Management Services Limited has demonstrated a steady financial performance over the last few years, showing consistent growth in both revenue and profitability. Below is a detailed breakdown of the company’s financial results over the past three financial years and the half-year period ending in September 2024:

1. Financial Year 2022:

• The company reported a total revenue of ₹114.02 crores.

• Total expenses for the year stood at ₹109.42 crores, resulting in a Profit After Tax (PAT) of ₹3.40 crores.

• The total assets of the company at the end of FY2022 were valued at ₹75.37 crores.

2. Financial Year 2023:

• In 2023, the company’s revenue declined slightly to ₹106.03 crores.

• Expenses were reduced to ₹99.60 crores, leading to an improvement in profit to ₹4.71 crores.

• The company’s total assets at the end of FY2023 were valued at ₹71.81 crores.

3. Financial Year 2024:

• The company experienced a rebound in revenue, which increased to ₹116.32 crores.

• Expenses for the year amounted to ₹105.18 crores.

• Profitability saw a notable improvement, with PAT increasing to ₹8.07 crores — nearly double the profit recorded in the previous year.

• The total asset value at the end of FY2024 stood at ₹70.66 crores.

4. Half-Year Performance (September 2024):

• For the six-month period ending in September 2024, Rapid Fleet reported a revenue of ₹87.39 crores.

• Expenses for this period totaled ₹78.13 crores.

• The company recorded a PAT of ₹7.01 crores — reflecting strong profitability within just six months.

• The total assets increased significantly to ₹101.30 crores as of September 2024, indicating a strengthened financial position.

Valuation Metrics and Key Performance Indicators (FY2024)

Rapid Fleet’s financial strength and profitability are reflected in the following key performance indicators (KPIs) for the financial year ending March 31, 2024:

• Return on Equity (ROE): The company achieved an impressive ROE of 50.09%, indicating a strong return for shareholders based on the equity capital invested.

• Return on Capital Employed (ROCE): ROCE stood at 32.59%, reflecting the company’s efficiency in generating profits from its capital base.

• Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) Margin: The EBITDA margin for FY2024 was 14.68%, highlighting the company’s healthy operating profitability.

• Profit After Tax (PAT) Margin: The PAT margin for the year was 6.98%, showing the company’s ability to convert revenue into net profit.

• Debt-to-Equity Ratio: The company maintained a conservative debt position with a debt-to-equity ratio of 0.74, indicating a balanced capital structure.

• Earnings Per Share (EPS): The company’s basic EPS for FY2024 stood at ₹807.19, reflecting the profitability per share based on the company’s earnings.

• Price-to-Earnings (P/E) Ratio: The P/E ratio was recorded at 11.34, which measures the market’s valuation of the company’s earnings.

• Return on Net Worth (RoNW): The company achieved a RoNW of 40.06%, underlining its ability to generate returns on shareholder equity.

• Net Asset Value (NAV): The NAV per share stood at ₹2,014.98, reflecting the intrinsic value of the company’s assets.

Peer Group Comparison, Objectives of the Issue, and Market Review for Rapid Fleet IPO

Peer Group Comparison

To understand how Rapid Fleet Management Services Limited measures up against its competitors, a peer group comparison provides valuable insights into key financial metrics such as Earnings Per Share (EPS), Price-to-Earnings (P/E) ratio, Return on Net Worth (RoNW), Net Asset Value (NAV), and overall income. Here’s a detailed comparison with two notable competitors in the logistics sector:

1. Premier Roadlines Limited

• Earnings Per Share (EPS): Premier Roadlines reported an EPS of ₹7.50, which reflects the company’s profitability per share.

• Price-to-Earnings (P/E) Ratio: The P/E ratio stands at 16.98, indicating how the market values the company’s earnings.

• Return on Net Worth (RoNW): Premier Roadlines achieved an RoNW of 31.77%, reflecting the company’s efficiency in generating returns from shareholder equity.

• Net Asset Value (NAV): The company’s NAV is reported at ₹3,973.69 per share, representing the intrinsic value of the company’s assets.

• Total Income: Premier Roadlines generated a total income of ₹228.54 crores during the last financial year.

2. AVG Logistics Limited

• Earnings Per Share (EPS): AVG Logistics reported an EPS of ₹27.34.

• Price-to-Earnings (P/E) Ratio: The P/E ratio stands at 17.72, showing how much investors are willing to pay for each rupee of earnings.

• Return on Net Worth (RoNW): AVG Logistics recorded an RoNW of 16.35%.

• Net Asset Value (NAV): The company’s NAV is reported at ₹20,009.26 per share.

• Total Income: AVG Logistics generated a total income of ₹479.76 crores during the last financial year, indicating a larger revenue base compared to Premier Roadlines.

Positioning of Rapid Fleet

Compared to its peer group, Rapid Fleet’s EPS of ₹807.19 and RoNW of 40.06% position it favorably in terms of profitability and return on equity. However, its smaller revenue base and asset value reflect the company’s more focused business model, which targets niche segments within the logistics industry.

Objects of the Issue

The proceeds from the Rapid Fleet IPO are planned to be allocated toward three main objectives:

1. Purchase of Vehicles (Goods Carriages):

• A portion of the funds will be used to expand the company’s fleet by purchasing additional goods carriages. This will enhance the company’s capacity to meet growing customer demand and strengthen its logistics infrastructure.

2. Working Capital Requirements:

• The company aims to strengthen its working capital position, ensuring smooth day-to-day operations and the ability to meet short-term financial obligations.

• Improved working capital will also allow the company to manage its cash flow more efficiently and scale its operations without financial strain.

3. General Corporate Purposes:

• A portion of the funds raised will be allocated to general corporate purposes.

• This includes strategic investments, business development initiatives, and strengthening the company’s market position.

Market Review and Analyst Coverage

Several well-known brokerage firms and financial institutions have reviewed the Rapid Fleet IPO. Although detailed recommendations have not been disclosed, the IPO has drawn attention from a broad range of market participants. The list of analysts and financial institutions covering the IPO includes:

• Canara Bank

• DRChoksey FinServ

• Emkay Global

• Hem Securities

• IDBI Capital

• Marwadi Shares

• Nirmal Bang

• SBICAP Securities

• Sharekhan

• SMC Global

• Sushil Finance

• Swastika Investmart

• Ventura Securities

• Geojit

• Reliance Securities

• Capital Market

• BP Wealth

• ICICIdirect

• Choice Broking

The wide range of coverage from these financial institutions indicates that the IPO is attracting significant market interest. The detailed analysis and insights from these institutions will provide investors with a better understanding of the company’s market potential and competitive standing.