Gujarat-based passenger mobility company Chartered Speed has approached capital markets to raise funds up to Rs 855 crore via IPO for increasing the fleet size and debt reduction. It has filed preliminary papers with the SEBI on September 4.
The IPO is a combination of fresh issuance of shares worth Rs 655 crore, and an offer-for-sale of Rs 200 crore worth shares by promoters.
The company may consider an issue of equity shares worth up to Rs 131 crore before the IPO launch. This is a part of fresh issue component.
Chartered Speed that operates a self-owned bus fleet of over 2,000 vehicles majorly across Odisha, Madhya Pradesh and Gujarat with a topline of Rs 667 crore intends to spend Rs 98 crore of the fresh issue proceeds for purchase of electric buses. Further, Rs 396.5 crore will be used for part payment of outstanding borrowings, and the balance amount for general corporate purposes.
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Its total debt as of June 2025 was Rs 552.5 crore. If the IPO plan fructifies, there would be significant reduction in debt burden.
Chartered Speed has turned the corner in financial year ended March 2025 with profit at Rs 70 crore against loss of Rs 5.5 crore in the previous year. Revenue during the same period increased sharply by 92 percent to Rs 666.8 crore, up from Rs 347.3 crore.
Motilal Oswal Investment Advisors, and SBI Capital Markets are appointed to manage the Chartered Speed IPO.
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