IPO Update: Chartered Speed plans ₹855 crore IPO; DRHP filed with SEBI for expansion, debt repayment
- 5th September 2025
- 05:00:00 PM
- 3 min read
Summary
Chartered Speed Limited has filed its ₹855 crore IPO DRHP with SEBI, comprising ₹655 crore fresh issue and ₹200 crore OFS. Funds will be used for electric buses, debt repayment, and corporate expansion.
Mumbai | September 5
Chartered Speed Limited, a leading passenger mobility services provider, has taken its first step towards a public listing by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is planning to raise ₹855 crore through its initial public offering (IPO), which will include both a fresh issue and an offer-for-sale (OFS).
IPO details
The proposed issue comprises a fresh issue of equity shares worth ₹655 crore and an OFS of up to ₹200 crore by promoters Pankaj Gandhi and Alka Pankaj Gandhi. A portion of the issue will also be reserved for employees, who will receive shares at a discounted price under the employee quota.
Chartered Speed may also explore a pre-IPO placement of up to ₹131 crore with institutional investors. If executed, this would proportionally reduce the size of the fresh issue.
The IPO is being managed by Motilal Oswal Investment Advisors and SBI Capital Markets, while MUFG Intime India will act as the registrar.
Use of proceeds
The company intends to utilise the proceeds of the fresh issue for three major purposes:
- ₹98 crore earmarked for the purchase of electric buses, supporting its shift towards sustainable urban mobility.
- ₹396.4 crore for the repayment or prepayment of existing borrowings, aimed at reducing its debt burden.
- Remaining funds to be used for general corporate purposes, enhancing liquidity and supporting operational needs.
Chartered Speed at a glance
Established over 15 years ago, Chartered Speed has emerged as a leading passenger mobility enterprise in India, operating a fleet of over 2,000 buses across six states. The company serves more than 500 cities, carrying close to 3.5 lakh passengers every day.
Its inter-city operations are spread across Gujarat, Odisha, Madhya Pradesh, Rajasthan, and Assam, while its intra-city services are largely focused in Gujarat and Madhya Pradesh. Unlike many competitors, Chartered Speed primarily operates with a self-owned fleet, which provides greater control over costs, service reliability, and scheduling efficiency.
Financial performance
The company has demonstrated a strong turnaround in financial performance over the past two years:
- Operating revenue rose to ₹666.7 crore in FY25, more than doubling from ₹332 crore in FY23.
- Revenue from its annuity model surged to ₹478.1 crore in FY25, compared with ₹112 crore in FY23, highlighting the scalability of its contract-driven operations.
- The company swung to profitability, reporting a profit after tax (PAT) of ₹70 crore in FY25, a sharp recovery from a loss of ₹8.3 crore in FY23.
Industry outlook
The IPO comes at a time when India’s public transport and electric mobility sectors are witnessing robust growth. Government incentives for clean energy vehicles and rising demand for reliable inter-city and intra-city travel are expected to benefit operators like Chartered Speed. With its planned investment in electric buses and focus on debt reduction, the company is well-positioned to strengthen its competitive edge in the rapidly evolving mobility space.
Outlook
The Chartered Speed IPO is set to play a pivotal role in accelerating the company’s next phase of growth. By reducing debt, expanding its fleet, and pushing into electric mobility, the company aims to reinforce its position as a leading passenger transport operator. Investors will be closely watching this issue as it adds to the growing list of transport and EV-linked IPOs entering Indian capital markets.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
