Quadrant Future Tek Limited, a company engaged in developing next-generation Train Control and Signaling Systems for the Indian Railways’ KAVACH project, is all set to launch its IPO. The company, which also manufactures specialty cables, plans to raise ₹290 crore through this book-built IPO.
The IPO opens for subscription on January 7, 2025, and will close on January 9, 2025. Quadrant Future Tek IPO price band is set at ₹275 to ₹290 per share. The shares will list on the BSE and NSE, with the tentative listing date scheduled for January 14, 2025.
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Company Background and History
Quadrant Future Tek Limited was incorporated in September 2015. Since then, the company has been focused on technological innovation, particularly in the railway sector. A key project under its belt is the KAVACH initiative, which enhances railway safety and reliability. The company operates a manufacturing facility in Mohali, Punjab, producing specialty cables and hardware.
Quadrant’s portfolio extends across various industries, including railway signalling, naval defence, renewable energy, and electric vehicles. This diverse approach is backed by strict quality management systems and adherence to international standards.
Why Quadrant Future Tek is Going Public
The IPO aims to:
- Fund long-term working capital for its specialty cable division.
- Develop an Electronic Interlocking System for railway projects.
- Repay or prepay outstanding loans.
- Support general corporate purposes.
By raising funds, Quadrant Future Tek aims to strengthen its foothold in the railway infrastructure sector, improve manufacturing capabilities, and reduce debt.
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Current Status of Quadrant Future Tek
Despite consistent profits in FY23 and FY24, the company posted a net loss of ₹12.11 crore for H1 FY25. This fluctuation raises questions about the company’s short-term performance but highlights potential for long-term growth.
Market observers report that Quadrant Future Tek shares are trading at par in the grey market, reflecting steady demand without excessive speculation.
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Quadrant Future Tek financials (YoY comparison)
| Metric | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Revenue (₹ Cr) | 65.14 | 151.82 | 152.95 | 104.29 |
| Profit After Tax (₹ Cr) | -12.11 | 14.71 | 13.9 | 2 |
| Assets (₹ Cr) | 149.66 | 142.82 | 118.82 | 113 |
| Net Worth (₹ Cr) | 34.18 | 44 | 29.42 | 16 |
| Borrowings (₹ Cr) | 98.01 | 82 | 74 | 80.68 |
Source: moneycontrol
IPO Details
| Detail | Information |
| IPO Open Date | January 7, 2025 |
| IPO Close Date | January 9, 2025 |
| Price Band | ₹275 to ₹290 per share |
| Issue Size | ₹290 crore |
| Lot Size | 50 shares |
| Minimum Investment | ₹14,500 |
| Allotment Date | January 10, 2025 |
| Listing Date | January 14, 2025 |
Shareholding Pattern (Pre and Post IPO)
| Shareholder Category | Pre-Issue Holding | Post-Issue Holding |
| Promoters | 93.33% | 70% |
| Public | 6.67% | 30% |
IPO Fund Utilisation Plan
- ₹149.72 crore – Long-term working capital (Specialty Cable Division)
- ₹24.37 crore – Development of the Electronic Interlocking System
- ₹23.62 crore – Loan repayment/prepayment
- Remaining – General corporate purposes
Why Should You Invest in Quadrant Future Tek IPO?
Advantages:
- KAVACH Project: Involvement in Indian Railways’ flagship safety initiative offers long-term growth potential.
- Sectoral Expertise: Advanced manufacturing capabilities for critical industries like defence and renewable energy.
- Partnerships: MoU with RailTel enhances the company’s prospects in railway signalling and automation.
- Growth Plans: Expanding storehouse of projects and increasing product lines through IPO funding.
Disadvantages:
- Recent losses: Negative performance in H1 FY25 raises red flags.
- Competition: Rising competition from both established players and new entrants.
- High debt levels: Borrowings of ₹98.01 crore indicate leverage risk.
- Market uncertainty: Grey market activity suggests muted interest, hinting at potential listing-day volatility.
Bottomline
Quadrant Future Tek IPO offers exciting prospects, particularly with its role in the KAVACH project. However, investors should weigh the company’s recent financial performance and market sentiment before making a decision. The IPO presents a blend of innovation and risk, making it suitable for investors with a high-risk appetite and long-term vision.
