Chartered Speed Files DRHP for ₹855 Crore IPO Under Book-Build; To Cut Debt by ₹396.5 Crore and Fund 56 E-Buses

Ahmedabad, Friday, Sep 5, 2025: Chartered Speed Limited (proposed NSE, BSE) has filed its Draft Red Herring Prospectus for an initial public offering aggregating up to ₹855 crore, involving a fresh issue of up to ₹655 crore and an offer for sale (OFS) aggregating up to ₹200 crore by promoters Pankaj Gandhi and Alka Pankaj Gandhi. The 100% book-built offer will be made in accordance with Rule 19(2)(b) of the SCRR read together with Regulation 31 and Regulation 6(2) of SEBI ICDR, with proposed listing on BSE and NSE. Registrar is MUFG Intime India; BRLMs are Motilal Oswal Investment Advisors and SBI Capital Markets.

The funds are to be deployed by the company to prepay/repay borrowings of ₹396.47 crore and to acquire 56 electric buses at a cost of ₹98 crore, with the remaining for general corporate purposes. A Pre-IPO placement of ₹131 crore could be considered and, if done, will decrease the fresh issue size.

₹655 Crore Fresh Issue and ₹200 Crore OFS by Promoters

The issue is a 100% book-built offer with a total size of ₹855 crore. The fresh issue component stands at ₹655 crore. The balance ₹200 crore will be raised through an offer for sale (OFS) by promoter Pankaj Gandhi and Alka Pankaj Gandhi.

Every equity share will have a face value of ₹5. This represents the post-sub-division capital structure. As an incentive to employees, the company is reserving up to 5% of the post-issue equity as an employee reservation, which could also involve an offer of a discount to such employees. There could also be a pre-IPO placement of up to ₹131 crore, in which case the size of the fresh issue will be reduced proportionally.

Post-offer, the equity shares will be listed on both the BSE and NSE, whose designated stock exchange shall be intimated. Issue is being handled by MOIAL and SBICAPS as the Book Running Lead Managers (BRLMs), and MUFG Intime India has been designated as the registrar.

₹396.47 Crore Debt Repayment to Lower Borrowings and Finance Costs

The company has made definite plans for the use of the funds raised in the issue. A significant amount, of around ₹396.47 crore, will be used for part repayment or prepayment of consolidated borrowings. An amount of around ₹98 crore has been set aside for the acquisition of 56 electric buses of the EKA 13.5-metre seater model. The rest of the amount will be spent on general corporate purposes and issue expenses, as per SEBI regulations, limited to 25% of the gross proceeds.

75% QIB, 15% NII, 10% Retail Allocation Under SEBI Norms

Under the structure proposed, at least 75% of the net offer will be reserved for Qualified Institutional Buyers (QIBs). Up to 60% of this may be allotted to Anchor Investors. For Non-Institutional Investors (NIIs), the portion will be limited to 15% of the net offer. In this category, one-third will be allocated to bids between ₹2–10 lakh, and the remaining two-thirds will be allocated to bids over ₹10 lakh. The retail investor category will constitute not more than 10% of the issue, as per regulatory norms.

EV Transition and Deleveraging Strategy Balanced Against Key Risk Factors

• De-leveraging: The repayment enhances balance sheet resilience and may lower finance costs.
• EV Transition: Capex for 56 e-buses supports the shift toward electric mobility in high-density corridors, complementing existing contracts.
• Key risks: Revenue concentration in Odisha, execution and supply-chain dependencies (including limited EV-bus OEMs), and industry exposure to fuel price volatility for non-EV operations.

Note: All figures are as disclosed in the company’s Draft Red Herring Prospectus and are subject to updates in the Red Herring Prospectus, including price band, bid lot, and final allocations.

Chartered ͏Speed’s IPO filing ͏combines͏ debt repayment with i͏nv͏estment͏ in e͏lectric buses, h͏ighlighting͏ a dual focus on deleveragi͏ng and͏ susta͏inable transp͏o͏rt expansion.͏ The͏ struct͏ured allocation͏ o͏f proc͏ee͏ds͏ reflects reg͏ulatory compliance and operational pl͏a͏nn͏in͏g͏. While the m͏ove͏ ͏strength͏en͏s financial and st͏rategic͏ positi͏oning, execution ch͏allenges, reg͏ional revenue depen͏d͏ence, and supply chain risks remain͏ ͏important con͏siderati͏ons for th͏e ͏company’s long-term trajectory.

REF: https://www.bseindia.com/corporates/download/330660/IPO Prior/CSLDRHP_20250905055028.pdf

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