Chartered Speed, a major player in the passenger mobility sector in India, has submitted its draft red herring prospectus (DRHP) with Sebi, marking its intention to go public with an initial public offering (IPO).
The IPO comprises a fresh issue of shares worth up to Rs 655 crore and an offer-for-sale up to Rs 200 crore by its promoters, Pankaj Gandhi and Alka Pankaj Gandhi.
The IPO aims to raise funds primarily for investing in electric buses, with Rs 98 crore allocated for this purpose. Additionally, Rs 396.4 crore will be directed towards the pre-payment or repayment of certain borrowings, while the remaining funds will be used for general corporate purposes. The IPO’s structure includes a face value of Rs 5 per share, and a discount is being offered to eligible employees who subscribe to the employee reservation portion.
Chartered Speed’s offering is structured as a book-building process, with allocations made to different investor categories. Not more than 75% of the net offer is allocated to qualified institutional buyers, while non-institutional bidders and retail individual bidders are assigned no more than 15% and 10% of the net offer, respectively. The company is also considering a pre-IPO placement of up to Rs 131 crore, which would reduce the size of the fresh issue if completed.
Chartered Speed has been operating since its incorporation as Chartered Speed Private Ltd in 2007, transitioning to Chartered Speed Limited in 2018. As of June 30, 2025, the company operates a fleet of over 2,000 vehicles, providing sustainable and efficient transportation services across six Indian states. Its extensive network spans 500 cities, serving around 3.5 lakh passengers daily.
The company’s business model includes an annuity model and a ticket revenue model. The annuity model involves long-term contracts with state transport undertakings (STUs) and other institutions, providing stable cash flows through fixed payments. The ticket revenue model allows the company to retain all revenue from ticket sales and explore additional revenue streams such as advertising and express parcel delivery.
Financially, Chartered Speed has experienced significant growth. Its revenue from operations increased to Rs 666.7 crore in Fiscal 2025 from Rs 332 crore in Fiscal 2023, largely owing to the annuity model’s revenue increase from Rs 112 crore to Rs 478.1 crore over the same period. Furthermore, its profit after tax saw a dramatic rise from a loss of Rs 8.3 crore in Fiscal 2023 to a profit of Rs 70 crore in Fiscal 2025.
The company has also placed an order for 945 electric buses, set for delivery in Fiscal 2027, through its subsidiaries CSL Mobility Private Limited and CSL Mobility I Private Limited. This move aligns with the company’s strategy to enhance its fleet with sustainable transportation options.
Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers for the IPO, with MUFG Intime India Private Limited serving as the registrar. The equity shares are proposed to be listed on both the BSE and NSE.
The Indian mobility industry, projected to grow at a compounded rate of 9.5% from Fiscal 2025 to Fiscal 2030, presents significant opportunities for growth. Chartered Speed is well-positioned to capitalise on this growth, supported by its robust operational platform and strategic focus on expanding its fleet and services.
Key dates related to the IPO process, such as the offer opening and closing dates, basis of allotment, listing dates, and other relevant timelines, are yet to be announced. Investors are advised to stay updated on these details as the IPO progresses.