Quadrant Future Tek debuts on D-Street with 29% premium over IPO price

Quadrant Future Tek shares had a robust debut on January 14, listing at Rs 370 on the NSE, a premium of 27.5 per cent over the IPO price of Rs 290. On the BSE, the shares opened even stronger at Rs 374, marking a 29 per cent gain.

The IPO, which opened for subscription from January 7 to 9, saw massive demand, with 185.48 times oversubscription.

Retail investors subscribed 65.71 times, while NIIs and QIBs bid 275.21 and 327.76 times, respectively. The Rs 290 crore IPO was entirely a fresh issue of 1 crore shares, priced at Rs 275-290 per share.

The company raised Rs 130.50 crore from anchor investors ahead of the issue. Proceeds will fund long-term working capital needs, the development of an advanced Electronic Interlocking System, and repayment of certain loans, alongside general corporate purposes.

Analysts had expected a listing range of Rs 425-450, according to Zee Business estimates. Short-term investors are advised to keep a stop loss at Rs 400.

The IPO was managed by Sundae Capital Advisors, with Link Intime India as the registrar. Brokerages rated the IPO as a ‘subscribe’ for its strong growth outlook and attractive valuation.

IPO highlights and subscription details The Rs 290-crore public offering was available for subscription within the price band of Rs 275 to Rs 290 per share, with a minimum lot size of 69 shares. The IPO saw a robust response, with demand exceeding expectations, leading to an oversubscription of more than one hundred eighty times.

Company overview and growth potential Quadrant Future Tek is a research-oriented company specialising in advanced Train Control and Signaling Systems, developed under the Indian Railways' ambitious KAVACH initiative. This technology enhances safety and reliability in rail transportation. Additionally, the company manufactures specialty cables for diverse sectors, including railways, defence, solar energy, and electric vehicles. With a state-of-the-art Electron Beam Irradiation Centre, it serves as a critical supplier to original equipment manufacturers (OEMs).

Utilisation of IPO proceeds The funds raised through the IPO are earmarked for several strategic purposes. These are as follows: 

• Meeting long-term working capital requirements.
• Capital expenditure for the development of the Electronic Interlocking System.
• Repayment or prepayment of outstanding working capital loans.
• Allocation for general corporate expenses.

Outlook for the listing day 

The listing of Quadrant Future Tek is expected to reflect the company’s robust fundamentals and the enthusiasm demonstrated during the subscription period. Market participants are optimistic about the company’s growth trajectory, especially given its diversified portfolio and alignment with emerging industry trends such as sustainability and modernisation of critical infrastructure.

Long-term investment appeal For investors considering long-term prospects, Quadrant Future Tek’s focus on research-driven innovations and its role in key national initiatives like the modernisation of Indian Railways could position it as a strong contender in its niche market. The company’s growth strategy and contribution to high-demand sectors underscore its potential for sustained value creation.