Riding the Wave: Chartered Speed’s IPO Zooms Ahead to Fund Electric Fleet Growth and Debt Cleanup

Chartered Speed, a leading passenger mobility solutions provider in India, has officially filed its draft papers for an Initial Public Offering (IPO) to raise Rs 885 crore. This move signals the company’s ambitions to expand its fleet and strengthen its financial position. The IPO involves a combination of fresh share issuance and a sale of existing shares by promoters. Motilal Oswal Investment Advisors Ltd. and SBI Capital Markets Ltd. have been appointed as the book-running lead managers for this offering.

Key Highlights of the Chartered Speed IPO:

The IPO size is approximately Rs 885 crore, comprising a fresh issue worth Rs 655 crore and an offer-for-sale (OFS) by existing shareholders amounting to Rs 200 crore.

Promoters Pankaj Gandhi and Alka Pankaj Gandhi are selling shares worth Rs 200 crore as part of the OFS.

The funds raised through the fresh issue will primarily be directed towards capital expenditure (capex), including the purchase of electric buses, and repayment of existing debt.

The equity shares from this offering will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Chartered Speed operates a fleet of over 2,000 buses and has a presence in around 500 cities with more than 65 branches and 650+ dedicated pick-up and drop points.

The company reported revenue growth from Rs 332 crore in FY23 to Rs 666.7 crore in FY25, showcasing a robust compounded annual growth rate (CAGR) of about 41.7%.

Detailed Insights on the IPO and Company Plans

Fresh Share Issue and Use of Proceeds:

Chartered Speed intends to use a significant portion of the IPO proceeds to fund capital expenditure, which includes purchasing electric vehicles to expand and modernize its fleet. This aligns with the firm’s strategic emphasis on sustainable and eco-friendly urban mobility solutions. Part of the funds will also be allocated for prepayment or repayment of existing borrowings, aiming to reduce financial leverage and improve the balance sheet strength. Lastly, a portion will be used for general corporate purposes to support ongoing operational and strategic needs.

Offer-for-Sale by Promoters:

As part of the Rs 885 crore IPO, promoters Pankaj Gandhi and Alka Pankaj Gandhi will sell shares worth Rs 200 crore. This sale provides liquidity for promoters while allowing new public investors to enter the shareholding structure. This mix of fresh issuance and OFS is expected to balance company growth funding with shareholder returns.

Company Overview:

Established over 15 years ago, Chartered Speed is a prominent player in the passenger bus transport industry in India, specializing in both intercity and intracity travel. The company primarily operates its own fleet, which stood at over 2,000 vehicles as of mid-2025. Their extensive network across 500 cities is supported by a strong workforce of over 4,000 employees, including around 2,480 drivers. The company also manages more than 650 dedicated pick-up and drop locations alongside 65 branch and booking offices, signifying a strong operational footprint.

Financial Performance:

Chartered Speed’s financial health has been on an impressive upward trajectory. From fiscal year 2023 to fiscal year 2025, the company doubled its revenue from Rs 332 crore to Rs 666.7 crore, reflecting a high growth rate. This growth has been driven by increasing demand for mobility solutions and strategic fleet expansions, particularly focusing on electric vehicle integration as a response to market trends and environmental concerns.

Role of Book-Running Lead Managers:

Motilal Oswal Investment Advisors Ltd. and SBI Capital Markets Ltd. have been appointed as the book-running lead managers. Their role includes managing the IPO process, determining the appropriate pricing of the shares through book building, and ensuring the offer is well communicated and subscribed by investors. MUFG Intime India Pvt Ltd. will serve as the registrar for the issue, managing share allotment and investor records.

Listing Details:

The proposed equity shares will be listed on India’s two major stock exchanges—NSE and BSE—enabling broad investor participation and liquidity.

This IPO marks a significant step for Chartered Speed as it aims to leverage capital markets to fuel its expansion and solidify its position in the rapidly evolving Indian transportation space. With a focus on electric vehicles and robust operational growth, the company is positioning itself for future market leadership.

Source: NDTVProfit