Ahmedabad-based Chartered Speed Ltd. has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).

The offer, with a face value of Rs 5, is a mix of fresh issue of shares up to Rs 655 crore and an offer-for-sale up to Rs 200 crore by promoters – Pankaj Gandhi and Alka Pankaj Gandhi respectively.  The offer also includes a subscription reservation by eligible employees, and a discount is being offered to eligible employees bidding in the employee reservation portion.

The proceeds from its fresh issuance worth Rs 655 crore will be utilised for investment in electric buses worth Rs 98 crore, pre-payment or repayment in full or part of certain borrowings of the company for Rs 396.4 crore and general corporate purposes.  

The company, in consultation with the book-running lead managers, may consider a pre-IPO placement, aggregating up to Rs 131 crore. The pre-IPO placement if completed, the fresh issue size will be reduced.

The Offer is being made through the book-building process, wherein not more than 75% of the net offer is allocated to qualified institutional buyers, and not more than 15% and 10% of the net offer is assigned to non-institutional bidders and retail individual bidders respectively.

The company was originally incorporated in 2007 as Chartered Speed Private Ltd and in 2018 transformed to Chartered Speed Limited. The company is a leading passenger mobility company in India with an operational bus fleet of over 2,000 vehicles as on June 30, 2025 (Source: F&S Report). The company primarily operates a self-owned fleet, which enables it to maintain greater control over its operations.

And with over 15 years of experience in the mobility sector, the company providing sustainable, affordable, and efficient inter-city and intra-city transportation solutions across six states (Source: F&S Report). Its extensive network spans 500 cities, enabling it to serve approximately 3.5 lakh passengers daily (Source: F&S Report).

The company’s inter-city bus operations are largely focused in Gujarat, Odisha, Madhya Pradesh, Rajasthan and Assam, and intra-city bus operations are largely focused in Gujarat and Madhya Pradesh.

The mobility industry is expected to grow at a compounded rate of 9.5% between Fiscal 2025 and Fiscal 2030. (Source: F&S Report).

The company’s business model has two key models – annuity model and ticket revenue model. In the annuity model the company enters into a long-term contract with state transport undertakings (“STUs”), government owned and certain educational and corporate institutions, whereby it is entitled to fixed payments based on number of kilometers per day or a combination of parameters as decided in the contract. It ensures predictable and stable cash flows.

Its major annuity contracts are with state transport undertakings like OSRTC, AMTS and GSRTC, and certain schools and corporates

In the ticket revenue model, it allows the company to retain the entire revenue generated from ticket sales as well as offers the opportunity for additional revenue streams such as advertising and express parcel delivery. Its ticket revenue bus operations largely focused on inter-city routes in Gujarat, Madhya Pradesh, Rajasthan, Assam and Maharashtra.

Chartered Speed revenue from operations increased to Rs 666.7 crore in Fiscal 2025 from Rs 332 crore in Fiscal 2023.  The company benefited from its annuity model revenue rising to Rs 478.1 crore during Fiscal 2025 from Rs 112 crore during Fiscal 2023. 

The company’s profit after tax rose to Rs 70 crore during Fiscal 2025 from a loss of Rs 8.3 crore during Fiscal 2023.

As on the date of this Draft Red Herring Prospectus, the company has ordered 945 EV Buses, through its subsidiaries – CSL Mobility Private Limited and CSL Mobility I Private Limited, and expects to receive delivery of these buses in Fiscal 2027. 

Motilal Oswal Investment Advisors and SBI Capital Markets are the book-running lead managers and MUFG Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.

DRHP Link:https://www.bseindia.com/corporates/download/330660/IPO%20Prior/CSLDRHP_20250905055028.pdf