Rapid Fleet is coming up with an IPO with a fresh issue of 22,84,800 shares worth INR 43.87 crores. The company aims to fund the working capital requirements, purchase vehicles, and meet general corporate purposes. 

Rapid Fleet IPO – Important Dates

Read more about Rapid Fleet Management Services Limited IPO GMP

Rapid Fleet Management Services Limited IPO – Company Profile 

Rapid Fleet Management Services is a Chennai-based company engaged in the business of providing logistics services tailored to the diverse needs of its B2B and B2C clientele. The company is engaged in road transportation. 

The process begins with order booking, followed by route planning to optimise efficiency. Each shipment is carefully matched with an appropriate vehicle, factoring in cargo specifics for safe transit. 

The company owns 226 vehicles, which are being used by them to provide logistics services. The company serves a wide array of industries, including but not limited to Tyre, Logistics, Electronics, FMCG, Renewable, Durables, FNB, and Chemicals.

Rapid Fleet Management Services Ltd IPO Fundamental Analysis 

Rapid Fleet Management Services Limited’s revenue grew from ₹10,552.33 lakhs in FY23 to ₹11,558.61 lakhs in FY24. PAT increased to ₹807.19 lakhs, improving RoNW to 40.06%. NAV per share rose to ₹40.30.

• Revenue Trend: The revenue increased from ₹10,552.33  lakhs in March 2023 to ₹11,558.61 lakhs in March 2024. The revenue for the current year’s 6-month period ending September 2024 is INR 8,502.55lakh. 
• Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. 
• Profitability: The profit after tax (PAT) increased from ₹471.34 lakh in March 2023 to ₹807.19 lakh in March 2024, boosting investor confidence. The profit for the period ending September 2024 is ₹701.34 lakh. 
• Earnings per Share (EPS): The diluted EPS increased from ₹9.43 in March 2023 to ₹16.14 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ending September 2024 is ₹13.79. 
• Return on Net Worth (RoNW): The RoNW has increased from 39.03% to 40.06%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 

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Rapid Fleet IPO Financial Analysis

Rapid Fleet Management Services Limited IPO Peer Comparison 

Rapid Fleet Management Services Limited reported a revenue of ₹11,558.61 lakhs with an EPS of ₹16.14 and RoNW of 40.06%. In comparison, Premier Roadlines Limited and AVG Logistics Limited posted higher revenues but had lower RoNW figures.

Rapid Fleet Management Services Ltd IPO Objective

Rapid Fleet plans to utilise INR 13.02 crores to purchase vehicles for its expansion into renewable energy logistics, INR 36.78 crores for working capital, and the remaining funds for general corporate purposes, including strategic initiatives and business growth.

1. Purchase of vehicles: As an anticipated plan of expansion and tapping the market of the logistics industry and to expand the services in order to cater to the increasing demand, the Company has entered into logistics of the Renewal Energy Sector. The Company intends to deploy a sum of INR 13.02 crores towards the purchase of 3 sets of Extenders totalling 9 vehicles.

2. Funding working capital requirements: The business of the company is working capital intensive. The company intends to utilise INR 36.78 crores from Net Proceeds to meet its working capital requirement.

3. General Corporate Purpose: The company will deploy the remaining amount for general corporate purposes, including strategic initiatives, partnerships, acquisitions, branding, marketing, facility upgrades, client referrals, and other business needs.

Rapid Fleet IPO Risks And Challenges

Rapid Fleet generates the majority of its revenue from Tamil Nadu, making it vulnerable to regional risks. Dependence on third parties for equipment supply, vehicle maintenance, and Digitify TMS platform operations may impact business efficiency and profitability.

1. The majority of the revenue is generated by the State of Tamil Nadu. Any adverse development affecting the operations in this region could have an adverse impact on the business.

2. The company is dependent on various third parties for the adequate and timely supply of equipment and maintenance of the vehicles, and any delays or increases in costs related thereto may adversely affect the business.

3. The company relies on third-party service providers for setting and maintaining the Digitify TMS platform to handle the complete lifecycle of full truck operations, from indent creation to invoicing and any shortcomings in the services they offer could have an impact on the Company’s operations.

Rapid Fleet Management Services Ltd IPO – Industry & Market Potential

The Indian logistics industry is growing due to a flourishing e-commerce market and technological advancement. The logistics sector in India is predicted to account for 14.4% of the GDP.

The logistics business is highly fragmented and has over 1,000 active participants, including major local players, worldwide industry leaders, the express division of the government postal service, and rising start-ups that focus on e-commerce delivery.

The industry includes transportation, warehousing, and value-added services like packaging, labelling, and inventory management.

Rapid Fleet Management Services Limited IPO – Type of Offer

Rapid Fleet is coming up with an IPO with a fresh issue of 22,84,800 shares worth INR 43.87 crores. The company aims to fund the working capital requirements, purchase vehicles, and meet general corporate purposes. 

Rapid Fleet IPO Offer Size

The offer size for Rapid Fleet’s IPO is 22,84,800 fresh equity shares worth INR 43.87 crores. The proceeds will be utilised for working capital requirements, vehicle purchases, and general corporate purposes.

Rapid Fleet Management Services Limited IPO Allotment Structure

Rapid Fleet Management Services Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 4,21,800 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 4,21,800 shares, are reserved for market makers. 

How to apply for the Rapid Fleet Management Services IPO?

To apply for the Rapid Fleet Management Services Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Rapid Fleet Management Services Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Rapid Fleet Management Services Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Rapid Fleet Management Services IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Rapid Fleet Management Services Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Rapid Fleet Management Services Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Rapid Fleet Management Services Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Rapid Fleet Management Services Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange’s (NSE) Small Medium Exchange (SME) Platform. You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Rapid Fleet Management Services Ltd IPO Offer Registrar

The registrar for the Rapid Fleet Management Services Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Bigshare Services Private Limited

S6-2, 6th Floor, Pinnacle Business Park, 

Mahakali Caves Road,

 Andheri East, Mumbai- 400093, 

Maharashtra, India

Email: ipo@bigshareonline.com

Website: https://www.bigshareonline.co

Rapid Fleet Management Services SME IPO – FAQs