Strong Listing: Quadrant Future Tek Makes Stellar Debut At 28% Premium From IPO Price On Exchanges

The shares of Quadrant Future Tek Limited made an strong debut on the stock exchanges on Tuesday, January 14, 2024. The stock is listed at Rs 370 on the NSE, reflecting a premium of 27.5% over its issue price of Rs 90. On the BSE, the listing price was even higher at Rs 374, offering investors a 29% gain on their investment.

IPO Performance
Quadrant Future Tek's IPO, valued at Rs 290 crore, was open for subscription from January 7 to January 9, 2024, and attracted strong investor demand. The IPO price band was set between Rs 275 and Rs290 per equity share.

The issue closed with an oversubscription of 185.48 times. Retail Investors subscribed 65.71 times, Non-Institutional Investors (NIIs) subscribed 275.21 times, and Qualified Institutional Buyers (QIBs) subscribed 327.76 times.

Ahead of the IPO, the company raised Rs 130.50 crore from anchor investors on January 6, 2024.

IPO Details & Utilization of Funds
The IPO consisted entirely of a fresh issue of 1 crore shares, with no offer-for-sale (OFS) component. The minimum application size for retail investors was 50 shares, requiring an investment of Rs 14,500 at the upper price band.

Quadrant Future Tek plans to utilize the net proceeds from the IPO to fuel its growth and strengthen its operational capabilities. The funds are earmarked for:
Long-term working capital requirements to sustain ongoing operations.
Development of an advanced Electronic Interlocking System to enhance signalling systems.
Repayment or prepayment of working capital term loans, reducing the company's financial burden.
General corporate purposes, providing financial flexibility for strategic initiatives.

Company Profile
Established in September 2015, Quadrant Future Tek Limited is a technology-driven enterprise specializing in next-generation Train Control and Signaling Systems. The company is a key contributor to the Indian Railways' KAVACH project.

Quadrant Future Tek also operates a specialty cable manufacturing facility with an Electron Beam Irradiation Centre, emphasizing innovation and quality in its product offerings. Its state-of-the-art manufacturing, testing, and development facility is located in Village Basma, Tehsil Banur, District Mohali.

The company is committed to adhering to stringent quality standards, ensuring its products comply with ISO, IRIS, and TS standards. This focus on quality has cemented its reputation as a reliable partner for the Indian Railways and other key stakeholders.

Financial Performance
Financially, Quadrant Future Tek has displayed a healthy performance despite a slight revenue decline. Between the fiscal years ending March 31, 2023, and March 31, 2024, the company recorded a 1% decline in revenue,and a 6% increase in profit after tax (PAT).