Quadrant Future Tek Limited, an innovative developer of train control and signalling systems, is gearing up for its market debut with an initial public offering (IPO) valued at ₹290 crores. Investors can seize this exciting opportunity from January 7 to January 9, 2025, with a fresh issue of 1 crore shares up for grabs.
This IPO offers an enticing entry for investors, featuring a well-defined price band of ₹275 to ₹290 per share and a lot size of 50 shares. For retail investors, this means a minimum investment of just ₹14,500—a chance to tap into the company's promising growth prospects. The share allotment will be finalized by January 10, 2025, with a listing on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) slated for January 14, 2025. Don't miss the opportunity to be a part of a rail-tech company with a bright future ahead!
Quadrant Future Tek Limited IPO is a fundraise worth ₹290 crores comprising fresh issue of 1 crore shares. The IPO will be available for subscription from January 7, 2025, to January 9, 2025, providing an opportunity for investors looking to gain a stake in the railway technology sector.
Quadrant Future Tek IPO date | January 7, 2025 - January 9, 2025 |
Price band | ₹275 to ₹290 per share |
Face value | ₹10 per share |
Lot size | 50 shares |
Issue type | Book-built issue IPO |
Fresh issue | 1,00,00,000 shares amounting to ₹290 crores |
Total issue size | 1,00,00,000 shares amounting to ₹290 crores |
Listing at | BSE, NSE |
Share holding post issue | 4,00,00,000 |
Share holding pre issue | 3,00,00,000 |
The Quadrant Future Tek Limited IPO opens for subscription on January 7, 2025, and closes on January 9, 2025, with allotment slated for January 14, 2025.
IPO open date | January 7, 2025 (Tuesday) |
IPO close date | January 9, 2025 (Thursday) |
Basis of allotment | January 10, 2025 (Friday) |
Initiation of refunds | January 13, 2025 (Monday) |
Credit of shares to demat account | January 13, 2025 (Monday) |
Listing date on exchanges | January 14, 2025 (Tuesday) |
Cut-off time for UPI mandate confirmation | 5 PM on MONTH DATE, 2025 (Thursday) |
Quadrant Future Tek Limited, incorporated in September 2015, is focused on developing advanced Train Control and Signaling Systems for the Indian Railways' KAVACH project, aimed at improving passenger safety and reliability. The company also operates a specialized cable manufacturing facility, which includes an Electron Beam Irradiation Centre. The company’s facility in Village Basma, Punjab, is dedicated to manufacturing, testing, and developing specialty cables and hardware for its Train Control and Signaling Division.
As a technology-driven company, Quadrant Future Tek ensures its products meet stringent standards, including ISO, IRIS, and TS certifications, and adheres to strict Quality Management Systems for its specialty cables. As of October 31, 2024, the company employed 295 people across its manufacturing facility, Railway Signaling & Embedded System Design center, and corporate functions, contributing to its commitment to high-quality, cutting-edge technology in the railway and signaling sector.
The Company intends to utilize the net proceeds from the issue for various purposes, including funding long-term working capital requirements, capital expenditure for the development of an Electronic Interlocking System, prepayment or repayment of part or all of its outstanding working capital term loan, and general corporate purposes.
The Quadrant Future Tek Limited IPO showcases a healthy market capitalization of ₹1160 crores. Key performance indicators, as on March 31, 2024, reflect the company's financial health, with a Return on Equity (RoE) of 33.41%, Return on Capital Employed (RoCE) of 26.12%, and Debt-to-Equity ratio of 1.86.
The Return on Net Worth (RoNW) stands at 33.41%, while the Price-to-Book Value (P/BV) is seen at 19,73. The PAT Margin is 9.68. On an annual basis, the company's Profit After Tax (PAT) added 6% while the revenue edged down by 1% in the financial year ending on March 31, 2024.
A comparison of earnings per share (EPS) reveals a pre-IPO EPS of ₹4.90 while it is -₹6.05 post-IPO. Similarly, The price to earnings ratio (P/E) is 59.13 pre-IPO and -47.91 post IPO.
Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
Revenue | 65.14 | 151.82 | 152.95 | 104.29 |
Assets | 149.66 | 142.82 | 118.82 | 112.77 |
Net Worth | 34.18 | 44.11 | 29.42 | 15.61 |
Profit After Tax | -12.11 | 14.71 | 13.90 | 1.94 |
Reserves & Surplus | 4.18 | 34.11 | 19.42 | 5.61 |
Total Borrowing | 98.01 | 81.61 | 74.00 | 80.68 |
Amount in ₹ crores
Quadrant Future Tek Limited stands out for its advanced manufacturing technology, particularly Electron Beam Irradiation, which ensures high-quality, durable products for critical sectors like railways, defense, and renewable energy. The company has established a strong order book from Indian Railways and holds ISO and ROHS certifications that guarantee product reliability. Its focus on high-growth sectors and vertically integrated processes enhances cost efficiency and quality control.
The firm is also at the forefront of innovation, particularly in Automatic Train Protection Systems, and has formed strategic alliances, such as an exclusive MoU with RailTel, to expand its market reach and capitalize on global railway safety opportunities. The company’s in-house design capabilities and advanced cable manufacturing facilities further contribute to its competitive edge in the rail-tech and renewable energy markets.
Despite its strong technological capabilities, Quadrant Future Tek is heavily reliant on a single manufacturing facility, which makes it vulnerable to operational disruptions. Additionally, the company faces the challenge of keeping pace with rapid technological advancements, particularly as it ventures into the uncertain Train Control Systems sector. The firm also depends significantly on large contracts, such as the ₹978.6 crore order from Chittaranjan Locomotive Works, and failure to fulfill such obligations could negatively impact its financial standing.
Furthermore, legal proceedings involving the company and its promoters could harm its reputation and investor confidence. Other risks include potential technological obsolescence, a high concentration of revenue from a few clients, and vulnerabilities to regulatory changes and supply chain disruptions. These factors create uncertainty surrounding the company's long-term stability and growth prospects.
The Quadrant Future Tek Limited IPO presents an exciting chance for investors to tap into the railway technology sector at an early public stage. While the appeal of early investment is strong, making a sound financial decision requires a careful assessment of the company’s fundamentals, market position, and growth potential. Potential investors should undertake thorough research to ensure this opportunity aligns with their financial goals and risk appetite, turning a promising prospect into a well-informed, strategic investment.
What is the Quadrant Future Tek IPO?
The Quadrant Future Tek Limited IPO is a main-board offering, an entirely fresh issue of 1 crore equity shares with a face value of ₹10 per share, aiming to raise ₹290 crores. The share price is set between ₹275 and ₹290, with a minimum order quantity of 50 shares. This IPO will be open for subscription from January 7, 2025, to January 9, 2025. Link Intime India Private Limited is the registrar while Sundae Capital Advisors is the book-running lead manager.
When will the Quadrant Future Tek IPO open?
The Quadrant Future Tek Limited IPO will open for subscription on January 7, 2025, and will close on January 9, 2025.
When is the Quadrant Future Tek IPO listing date?
The tentative listing date for the Quadrant Future Tek Limited IPO is Tuesday, January 14, 2025.