Quadrant Future Tek made a solid debut on the stock exchanges today, with its shares opening at ₹370 on the NSE. This marks a 28% premium over the issue price of ₹290 per share. While the listing showed impressive gains, it was slightly below expectations after the overwhelming demand during the initial offering, which was oversubscribed 186 times.
IPO highlights and investor buzz
The company offered 1 crore fresh equity shares in its ₹290-crore IPO, which was open for investment from January 7 to 9. Despite a price range of ₹275-290 per share, the IPO saw massive investor interest. It was oversubscribed 186 times in total, with non-institutional investors leading the charge at 254 times. Retail investors and qualified institutional buyers (QIBs) were not far behind, subscribing 243 times and 133 times, respectively.
Ahead of the public offering, Quadrant Future Tek raised a significant amount through its anchor book, garnering attention from top institutional investors.
What's the grey market saying?
There's been a lot of buzz in the grey market, with early signs pointing to a potential listing premium of over 40%. Quadrant Future Tek now holds a market capitalisation of ₹2,792.8 crore, with a price-to-earnings (P/E) ratio of 43.01x and an enterprise value-to-EBITDA ratio of 30.08x, which reflects its strong valuation.
Company outline
The company is a key player in areas like advanced railway signalling systems and speciality cables, with notable involvement in Indian Railways' KAVACH project. As Quadrant Future Tek expands into sectors like defence, solar energy, and electric vehicles (EVs), it's aligned with the nation's focus on emerging industries and sustainability. If you're looking to invest in stocks with growth potential in such sectors, Quadrant Future Tek could be one to watch closely.
What should investors do now?
For anyone looking to invest in stocks, Quadrant Future Tek offers an interesting option, especially given its strong debut and impressive portfolio. Conservative investors might want to cash in on the strong listing gains, while those with a longer-term outlook may prefer to hold onto the shares to see the company's growth unfold. At 11:50 AM on January 14, the price of Quadrant Future Tek rose by 20% to ₹444. If you missed out on the IPO, don't worry—there could be an opportunity to buy in if the stock price dips after listing.
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