Rapid Fleet Management Services IPO Day 1: NSE SME issue booked 5% so far, check key details

The initial public offering (IPO) of small and medium enterprise (SME) Rapid Fleet Management Services Ltd opened to weak demand on Friday, March 21. The NSE SME issue has been booked only 5% so far on the first day of bidding.

Bidding in the issue was sluggish on the first day, as the IPO attracted bids for only 75,600 shares against 13.04 lakh shares on offer, the NSE data till 3:15 pm showed.

The retail investors’ portion was booked 10% times, with bids for 70,800 shares against 6.52 lakh shares on offer. Meanwhile, the non-institutional investors’ (NIIs) portion was subscribed 1%, with bids for 4,800 shares, compared to nearly 2.8 lakh shares on offer. The Qualified Institutional Buyers (QIBs) segment did not receive any bids. The company has set aside 3.72 lakh shares for the QIBs.

Ahead of the launch of the issue, Rapid Fleet Management Services also raised ₹10.73 crore through the anchor investors’ round. The board of directors of the company at its meetings held on March 20 finalised allocation of almost 5.59 lakh equity shares to a total of five anchor investors at an allocation price of ₹192 per share.

Rapid Fleet IPO details

Rapid Fleet Management Services aims to raise ₹43.87 crore through its SME IPO. The issue is 100% book-built and made up entirely of a fresh issuance of 22.85 lakh shares, with no offer-for-sale (OFS) component.

The company has fixed the price band of the issue at ₹183 to ₹192 per share. The lot size, or the minimum bid quantity to apply for the issue, is 600 shares. This equates to a minimum investment amount of over ₹1.15 lakh for retail investors (if bids are placed at the cut-off price) and ₹2.3 lakh for high networth investors (HNIs) as they need to bid for a minimum of 2 lots.

Rapid Fleet Management Services has appointed Gretex Corporate Services Ltd as the book-running lead manager of the IPO, while Bigshare Services Pvt. Ltd is the registrar for the issue. The market maker for the Rapid Fleet IPO is MLB Stock Broking Pvt. Ltd.

Rapid Fleet IPO: Important dates

The Rapid Fleet IPO will remain open for bidding from March 21 to March 25. After the bidding is closed, the allotment of shares is expected to be finalised on March 26. Successful bidders can expect the shares to be credited to their Demat accounts by March 27, with others receiving refunds on the same day.

Rapid Fleet Management Services shares are scheduled to list on the NSE Emerge platform on March 28.

Rapid Fleet IPO: Use of proceeds

Rapid Fleet Management Services proposes to utilise the net proceeds from the IPO mainly to expand operations.

In its red herring prospectus (RHP) submitted to the Securities and Exchange Board of India (Sebi), the company said that it plans to use nearly ₹13 crore of the IPO proceeds for the purchase of new vehicles (goods carriages). It also proposed to use ₹19.1 crore towards working capital requirements. The remaining amount would be used for general corporate purposes.

Rapid Fleet IPO: About the company

Established in 2006, Rapid Fleet Management Services Ltd is a logistics company that provides comprehensive logistics solutions and road transportation services tailored to both B2B (business-to-business) and B2C (business-to-consumer) clients.

The company currently manages a fleet of over 200 vehicles that serve a diverse range of industries like FMCG, automobile and electronics sectors.

Among the various services offered by the company are a comprehensive range of full and partial load services to cater to diverse cargo requirements, bonded storage and packaging services and PAN-India transport services.

The company has also developed its own mobile app to streamline business processes. It focuses on client compliance through e-bidding, portal RFQs (request for quotations), electronic proof of delivery (e-POD), invoicing and customer TMS (transport management system).

Rapid Fleet IPO: Company financials

For the first six months of the current financial year 2024-25 ended September 2024, Rapid Fleet Management Services reported revenue of ₹87.39 crore and a profit after tax (PAT) of ₹7 crore.

For the financial year 2023-24, the company reported a revenue of ₹116.32 crore compared to ₹106 crore in FY 2022-23. However, the company’s net profit jumped significantly to ₹8.07 crore in FY24 against ₹4.7 crore in FY23.