Chartered Speed IPO GMP, Date, Price Band & Review

Chartered Speed IPO GMP (Grey Market Premium)

“Grey Market Premium” or GMP is defined as the rate at which the IPO's shares are traded in the market before they are officially listed on the stock exchange.

The Chartered Speed IPO GMP is currently trading at ₹[.], reflecting the sentiment of unofficial investors before the official listing. This premium suggests a potential listing price of ₹[.], which is [.]% above the issue price. While the Grey Market Premium is a key indicator of demand and investor desire, it is important to remember that GMP is highly volatile and should not be the sole factor in your investment decisions.

Company Background

Chartered Speed Ltd. was incorporated on May 22, 2007, in Ahmedabad, Gujarat, as a private limited company. Over the past 15 years, the company has successfully evolved to better reflect its growing market identity, converting into a public limited company in 2018. The company started as a regional player in the transportation industry but has transformed and become one of India's leading passenger mobility companies. The company's current business involves providing intercity and intracity bus transportation services and has established a presence in 6 major states across the country.

Operations & Product Range

Chartered Speed Ltd. operates within the critical and growing public transportation and passenger mobility sectors. The core operating model of the company is based on providing dependable, cost-effective and sustainable transportation. The company possesses an extensive fleet of vehicles, including low-floor buses, semi-deluxe and deluxe buses, multi-axle coaches, super-luxury buses and electric vehicles. By meeting the everyday travel needs of the public, the company caters to a variety of customers, such as state transport agencies, government organisations, schools and individual passengers.

Facilities & Capacity

The core operations of Chartered Speed Ltd. are heavily facilitated by the company’s massive fleet size, which is over 2,000 buses. This fleet is self-owned, which gives the company management a higher degree of control over expenses. The company’s expansive network is securely covering hundreds of cities with a vast number of pickup and drop-off points, all efficiently facilitated by a dedicated team of drivers.

Brands & Market Presence

Chartered Speed Ltd. has managed to establish a highly recognisable brand image in the domestic passenger mobility space. Instead of depending on highly fragmented operations, the company has managed to operate under the single banner of Chartered Speed, with a strong 100% domestic market presence. The operational reach of the company is wide and covers key Indian states like Gujarat, Madhya Pradesh, Odisha, Assam, Rajasthan and Maharashtra. The company is able to easily cope with large government contracts and at the same time, it offers consumers direct routes, thus enhancing its image as a very reliable transport partner.

Revenue Streams & Business Model

Chartered Speed Ltd. is merely driving its major sources of revenue through its well-integrated two-pronged strategy. Its major source of revenue is its very dependable annuity model based on long-term contracts with state transport undertakings and government entities. Its second source of revenue is its ticket revenue model based directly on passenger revenues from its operations in intercity routes. In terms of geography, its operations in states like Odisha, Madhya Pradesh and Gujarat are its major sources of revenue, which are directly linked to the domestic transportation infrastructure.

Management & Shareholding

Chartered Speed Ltd. is led by promoters, including Pankaj Gandhi, Alka Pankaj Gandhi and Sanyam Gandhi. Before the IPO, the promoter group held a commanding majority shareholding in the company, showcasing deep internal ownership. In this offering, Pankaj Gandhi and Alka Pankaj Gandhi are acting as selling shareholders, responsibly offloading a portion of their stakes. However, after the IPO, existing shareholders will also sell their stakes, leading to dilution of ownership.

Board & Key Management

Chartered Speed Ltd.’s board members help in the strategic direction and daily operations of the enterprise, which are guided by a structured board of directors and key managerial personnel led by the core promoters. The role of the executive leadership is crucial in the confident achievement of organisational growth, the acquisition of long-term government contracts and the execution of the general firm’s expansion strategy. To provide excellent corporate governance, the board is composed of experienced directors. CS Nirav Prakashchandra Patel meticulously manages the compliance and secretarial functions, firmly ensuring strict adherence to regulatory standards.