Rapid Fleet Management Services shares list at 1.5% premium on NSE SME; check details

Shares of small and medium enterprise (SME) Rapid Fleet Management Services Ltd made a muted trading debut on Friday, March 28, with the stock listing at a marginal premium on the NSE Emerge platform.

The Rapid Fleet Management shares opened at ₹195 apiece, up 1.56% compared to its initial public offering (IPO) price of ₹192 per piece. Soon after opening, the shares advanced another 2.56% to hit the day’s high of ₹200 apiece.

As per the NSE data, around 10:15 am, as many as 70 lakh shares of the company were traded on the bourse, with a total trading value of ₹1.38 crore. The company’s market capitalisation stood at ₹147.21 crore.

As the minimum bid size to apply for the Rapid Fleet IPO was 600 shares, successful bidders who were allotted shares in the primary issue managed listing gains of ₹1,800 per lot (₹3 x 600) as soon as the stock started trading in the secondary market.

The Rapid Fleet IPO had seen a decent response when it was open for subscription from March 21 to March 25. The NSE SME issue was overall booked almost 2 times, with applications for 25.74 lakh shares against 13.04 lakh shares on offer.

The Rapid Fleet IPO raised ₹43.87 crore through 100% book-built. The issue was made up entirely of a fresh issuance of 22.85 lakh shares, with no offer-for-sale (OFS) component. The price band for the IPO was ₹183 to ₹192 apiece and the lot size was 600 shares.

Gretex Corporate Services Ltd was the book-running lead manager of the Rapid Fleet IPO, while Bigshare Services Pvt. Ltd was the registrar for the issue.

Ahead of the launch of the issue, Rapid Fleet had also raised ₹10.73 crore through its anchor investor round. The board of directors of the company, at its meetings held on March 20, had finalised the 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 Management Services had proposed 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 had said that it planned to use nearly ₹13 crore of the IPO proceeds for purchase of new vehicles (goods carriages). It had also proposed to use ₹19.1 crore towards working capital requirements. The remaining amount was to be used for general corporate purposes.

Established in 2006, Rapid Fleet Management Services Ltd is a logistics company that provides comprehensive logistics solutions and road transportation services tailored to cater to the needs of 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).

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