Chartered Speed IPO

Chartered Speed IPO is a book-building issue worth ₹855.00 crore, comprising a fresh issue of shares worth ₹655.00 crore and an offer for sale of ₹200.00 crore.

Motilal Oswal Investment Advisors Limited and SBI Capital Markets Limited are the book-running lead managers to the issue, while MUFG Intime India Private Limited is the registrar. For detailed information on the company's financials, business operations, and associated risks, investors are advised to refer to the Chartered Speed IPO DRHP.

About Chartered Speed Limited

Chartered Speed Limited was originally incorporated as Chartered Speed Private Limited on May 22, 2007, under the provisions of the Companies Act. The company was subsequently converted into a public limited company and renamed Chartered Speed Limited on September 10, 2018. It is headquartered in Ahmedabad, Gujarat, and operates as a passenger mobility and transportation solutions provider across India.

The company primarily provides inter-city and intra-city bus transportation services through a large self-owned fleet of more than 2,000 buses as of June 30, 2025. Chartered Speed serves approximately 3.5 lakh passengers daily and has established a presence across nearly 500 cities in India. Its operations span multiple states, including Gujarat, Odisha, Madhya Pradesh, Rajasthan, Assam, and Maharashtra.

Chartered Speed operates through two key business models. The annuity model, which contributed 71.70% of revenue in FY25, involves long-term contracts with state transport undertakings (STUs), government bodies, schools, and corporates, where the company receives fixed payments based on kilometres operated. The ticket revenue model generates income directly from passenger fares and is supplemented by parcel, advertising, and other ancillary revenue streams.

The company has emerged as a significant participant in India's organised passenger mobility sector through long-term contracts with various government transport authorities. It has also been actively expanding its presence in electric mobility and had 46 electric buses in operation as of June 30, 2025, while pursuing a broader fleet electrification strategy through additional EV bus orders and government-backed projects.

Chartered Speed's growth strategy is centred on expanding its fleet, increasing participation in government transportation programmes, strengthening long-term annuity-based contracts, enhancing technology integration through GPS, IoT, and fleet management systems, and accelerating the adoption of electric buses. Through these initiatives, the company aims to strengthen its market position in India's growing passenger mobility and public transportation sector.

Industry Outlook

India's passenger mobility and bus transportation sector is expected to benefit from rising urbanisation, increasing disposable incomes, and growing demand for affordable inter-city and intra-city travel services.

Road transport remains the dominant mode of passenger travel in India, accounting for a significant share of total passenger trips, creating substantial growth opportunities for organised bus operators.

Total passenger trips in India are projected to increase steadily through FY30, supported by infrastructure development, economic growth, and improving regional connectivity.

Government initiatives such as PM e-Bus Sewa, FAME-II, Bharatmala, and various state transport programmes are encouraging the modernisation and expansion of public transportation networks.

Electrification is emerging as a major industry trend, with increasing adoption of electric buses supported by policy incentives, sustainability goals, and lower operating costs over the long term.

Technology adoption, including digital ticketing, GPS-enabled fleet tracking, IoT systems, and AI-based fleet management tools, is improving operational efficiency across the sector.

Tier II and Tier III cities are expected to become key growth drivers for the industry as passenger mobility demand expands beyond major metropolitan centres.

Chartered Speed IPO Objectives

The company proposes to utilise the net proceeds from the IPO for the following objectives:

• Purchase of electric buses to support fleet expansion and strengthen its presence in the growing electric mobility segment.
• Capital expenditure requirements associated with the acquisition and deployment of additional EV buses.
• Repayment or prepayment, in full or in part, of certain outstanding borrowings of the company.
• Reduction of debt burden and interest costs to improve the company's financial position and balance sheet strength.
• Support long-term growth initiatives aligned with government-backed public transportation and EV programmes.
• Enhance operational flexibility through a stronger capital structure and improved cash flow position.
• General corporate purposes in accordance with applicable regulatory requirements.

Financial Performance of Chartered Speed Limited