Chartered Speed Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).
The offer, which has a face value of ₹5, consists of a fresh issue of shares totaling ₹655 crore and an offer-for-sale of up to ₹200 crore by promoters Pankaj Gandhi and Alka Pankaj Gandhi. The offer also features a subscription reservation for eligible employees, with a discount available for those participating in the employee reservation segment.
The funds raised from the fresh issuance of ₹655 crore will be allocated towards investments in electric buses amounting to ₹98 crore, the pre-payment or repayment of certain company borrowings totaling ₹396.4 crore, and various general corporate expenses.
In discussions with the book-running lead managers, the company may opt for a pre-IPO placement of up to ₹131 crore. Should this pre-IPO placement occur, the size of the fresh issue will decrease.
Motilal Oswal Investment Advisors and SBI Capital Markets are acting as the book-running lead managers, while MUFG Intime India Private Limited serves as the registrar for the offer.
Company Details
The company stands as a prominent passenger mobility enterprise in India, operating a fleet of over 2,000 buses as of June 30, 2025, according to the F&S Report. By primarily utilising a self-owned fleet, the company is able to exert more control over its operations.
With more than 15 years of expertise in the mobility industry, the company delivers sustainable, cost-effective, and efficient transportation solutions for both inter-city and intra-city travel across six states, as noted in the F&S Report. Its vast network covers 500 cities, allowing it to accommodate around 3.5 lakh passengers each day.
The company’s inter-city bus services are mainly concentrated in Gujarat, Odisha, Madhya Pradesh, Rajasthan, and Assam, while its intra-city operations primarily target Gujarat and Madhya Pradesh. Chartered Speed’s operational revenue grew to ₹666.7 crore in fiscal year 2025, up from ₹332 crore in fiscal year 2023.
The company saw benefits from its annuity model, with revenue increasing to ₹478.1 crore in fiscal year 2025 from ₹112 crore in fiscal year 2023. Additionally, the company’s profit after tax surged to ₹70 crore in fiscal year 2025, compared to a loss of ₹8.3 crore in fiscal year 2023.
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