Rapid Fleet Management Services Limited has officially launched its Initial Public Offering (IPO), inviting investors to subscribe from March 21 until March 25. The company has set a price band between ₹183 and ₹192 per share, with each share having a face value of ₹10. Interested investors can place bids for a minimum of 600 shares, and additional bids must also be in multiples of 600.
Overview of Rapid Fleet Management Services
Founded in 2006, Rapid Fleet Management specializes in logistics and transportation services, catering to both business-to-business (B2B) and business-to-consumer (B2C) markets. The company has expanded its operations significantly and now manages a fleet exceeding 200 vehicles. Their clientele spans various sectors, including FMCG, automotive, and electronics.
To improve service delivery, Rapid Fleet has developed a proprietary mobile application that enhances operational efficiency and provides 24/7 support. This application promotes client compliance through features like e-bidding, online requests for quotations (RFQs), electronic proof of delivery (e-POD), invoicing, and comprehensive customer transport management system (TMS).
Subscription Insights and Market Performance
According to the Red Herring Prospectus, notable competitors in the industry include Premier Roadlines Ltd and AVG Logistics Ltd, which have price-to-earnings (P/E) ratios of 16.98 and 17.72, respectively.
As of the first day of the IPO, the subscription status stands at 3%. The retail segment has seen a 5% subscription rate, while the Non-Institutional Investors (NII) and Qualified Institutional Buyers (QIB) portions are yet to show significant interest. At 11:35 IST, bids for 35,400 shares have been received against the total offer of 1,304,400 shares, as reported by chittorgarh.com.
Details on the IPO Structure
The Rapid Fleet IPO comprises a fresh issuance of 2,284,800 equity shares, amounting to an estimated ₹43.87 crore. Notably, there is no offer for sale (OFS) component included in this IPO. The funds raised are earmarked for various purposes, including the acquisition of cargo carriers, addressing working capital needs, and other general corporate activities.
The lead manager for this IPO is Gretex Corporate Services Limited, while Bigshare Services Pvt Ltd functions as the registrar. MLB Stock Broking Private Limited has been designated as the market maker for the offering.
Current Grey Market Premium (GMP)
As of today, the grey market premium (GMP) for the Rapid Fleet IPO is reported at ₹0, indicating that shares are trading at the issue price of ₹192 without any premium or discount. The GMP reflects investor sentiment regarding the potential of the stock in the market.
For further insights on IPOs, you can also explore the recent Paradeep Parivahan IPO allotment and how to check its status.
This IPO presents a promising opportunity for investors looking to delve into the logistics sector, especially given Rapid Fleet’s robust operational framework and growth trajectory.
