Ahmedabad-based Chartered Speed files DRHP for Rs 855 crore IPO

Ahmedabad-based passenger mobility company Chartered Speed has filed its Draft Red Herring Prospectus (DRHP) with markets regulator Sebi to raise Rs 855 crore through an IPO.

The issue will comprise a fresh equity sale worth Rs 655 crore and an offer for sale (OFS) of shares worth Rs 200 crore by promoters Pankaj Gandhi and Alka Pankaj Gandhi.

A portion of the offer will be reserved for eligible employees, who will also get a discount on the issue price.

From the fresh issue, Rs 98 crore will be used to buy electric buses, Rs 396.4 crore will go towards repayment or prepayment of borrowings, and the balance will be allocated to general corporate purposes.

The company may also consider a pre-IPO placement of up to Rs 131 crore. If that happens, the size of the fresh issue will be reduced accordingly.

Company background

Founded in 2007 and converted into a public company in 2018, Chartered Speed is one of India’s leading bus operators. As of June 30, 2025, it had a fleet of more than 2,000 buses across six states, serving around 3.5 lakh passengers daily in nearly 500 cities.

Its intercity operations are concentrated in Gujarat, Odisha, Madhya Pradesh, Rajasthan, and Assam, while its intracity services are mainly in Gujarat and Madhya Pradesh.

The company operates on two models. Under the annuity model, it signs long-term contracts with state transport undertakings, schools, and corporates, ensuring steady revenues through fixed payments. Major contracts include OSRTC, AMTS, and GSRTC. Under the ticket revenue model, it earns directly from passenger ticket sales, supplemented by advertising and parcel delivery.

Financial performance

Chartered Speed’s revenue more than doubled in two years, rising to Rs 666.7 crore in FY25 from Rs 332 crore in FY23. A large part of this growth came from the annuity model, where revenues increased to Rs 478.1 crore in FY25 from Rs 112 crore in FY23.

The company also turned profitable, posting a net profit of Rs 70 crore in FY25 compared with a loss of Rs 8.3 crore in FY23.

Chartered Speed is betting big on green mobility. It has already ordered 945 electric buses through its subsidiaries, with deliveries expected in FY27.

According to an F&S Report cited in the DRHP, India’s mobility industry is projected to grow at a CAGR of 9.5% between FY25 and FY30.

The IPO will be managed by Motilal Oswal Investment Advisors and SBI Capital Markets, with MUFG Intime India as registrar. The shares will be listed on both BSE and NSE.

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