Chartered Speed IPO: A Big Step Towards Growth and Debt-Free Future
It’s time for stock market investors to write a new story. Chartered Speed, a well-known passenger mobility company from Gujarat, is coming out with its IPO. The size of this IPO will be Rs 855 crore, which the company will use to expand its bus fleet and reduce its debt. In today’s time when the demand for sustainable and electric solutions is increasing in the transport and mobility sector, this move of Chartered Speed IPO is being considered quite significant.
Chartered Speed IPO details
The total size of the Chartered Speed IPO has been kept at Rs 855 crore. This will be a mix of fresh issue and offer-for-sale. Rs 655 crore will be raised through fresh issue, while promoters will sell their shares worth Rs 200 crore. This means that the company will get fresh capital and the promoters will also dilute their stake slightly.
Before the IPO launch, Chartered Speed is exploring another option – it can issue equity shares worth up to Rs 131 crore as a part of the fresh issue. If this happens, the company will get more resources for expansion.
Company’s business and presence
Chartered Speed’s core business is passenger mobility. The company currently owns more than 2,000 buses that ply mainly in Gujarat, Madhya Pradesh and Odisha. This is one such company which has established a strong presence in the organised bus service sector.
The topline numbers of FY25 are also quite encouraging. The company’s revenue reached Rs 667 crore, which clearly shows that demand and expansion are on both tracks.
One of the major focuses of this IPO will be to buy electric buses. Approx Rs 98 crore will be allocated for this purpose. Electric buses will make the company’s image even more eco-friendly and will also reduce operating costs in the long term.
Debt reduction and stronger balance sheet
There is one more major reason for which the company is bringing this IPO – reducing its debt. Chartered Speed had a debt of Rs 552.5 crore as of June 2025. Out of the IPO proceeds, Rs 396.5 crore has been kept directly for repayment of borrowings.
This means simply – the company will see a big cut in its debt load after the IPO. When debt reduces, cash flow improves, interest outgo reduces and the company has more resources available for growth. This is a positive sign for investors as financially stronger companies are more sustainable.
Turnaround in financial performance
If one looks at the company’s recent financials, Chartered Speed made a solid comeback in FY25. Last year the company had a loss of Rs 5.5 crore, but this year the company reported a profit of Rs 70 crore. Not just profit, revenue also increased by a massive 92% from Rs 347.3 crore to Rs 666.8 crore.
This performance clearly shows that the company’s operations have become efficient and demand is also quite strong. For investors who are looking for a growth story, this turnaround creates an attractive opportunity.
Chartered Speed IPO managers and credibility
For the success of an IPO, its management is as important as the fundamentals of the company. Chartered Speed has appointed two top-class investment bankers for its IPO – Motilal Oswal Investment Advisors and SBI Capital Markets. Both these firms have strong experience in IPO fundraising and capital market deals. Their presence further enhances the credibility of the IPO.
Opportunity for Investors
Passenger mobility is a fast-evolving sector these days. Electric mobility, better infrastructure and growing demand are all making this sector even more exciting. The Chartered Speed IPO is one such opportunity where investors can invest in an established and profitable company that is modernizing its fleet and simultaneously reducing its debt.
Yes, there are risks too such as regulatory changes, fuel prices and competition. But the company’s recent financial comeback, expansion plans and investment in electric buses, all together make this IPO a growth-oriented proposition.
Conclusion
Overall, the Chartered Speed IPO is a strong mix of growth and stability. The company will significantly reduce its debt through the IPO, invest in electric buses and further expand its fleet. Recent financial turnaround and revenue growth make this IPO even more interesting. For investors, this can be an opportunity to enter a company that is ready for the future and is focusing on sustainable mobility solutions.
Disclaimer:
This article is for informational and educational purposes only. This is not an investment advice of any kind. Before investing in IPO, definitely consult your financial advisor.
Also Read
Amanta Healthcare IPO Allotment Today: GMP, Status Check & Updates
