Quadrant Future Tek Ltd, a prominent player in railway signaling and train control systems, is set to launch its Initial Public Offering (IPO) to raise ₹290 crore. The IPO is scheduled to open on January 7, 2025, and close on January 9, 2025.

Company Overview

Established in 2015, Quadrant Future Tek Ltd specializes in developing next-generation train control and signaling systems, notably contributing to the Indian Railways’ KAVACH project aimed at enhancing passenger safety and system reliability. The company also manufactures specialty cables catering to sectors such as railways, naval defense, renewable energy, and electric vehicles. Their manufacturing facility, located in Village Basma, Mohali, Punjab, is equipped with advanced technology, including an Electron Beam Irradiation Centre, ensuring high-quality production standards.

IPO Timeline

• IPO Opening Date: January 7, 2025
• IPO Closing Date: January 9, 2025
• Basis of Allotment: January 10, 2025
• Initiation of Refunds: January 13, 2025
• Credit of Shares to Demat Accounts: January 13, 2025
• Listing Date: January 14, 2025

Price Band and Lot Size

• Price Band: ₹275 to ₹290 per equity share
• Face Value: ₹10 per share
• Market Lot: 50 shares
• Minimum Investment Amount: ₹14,500 for one lot (50 shares)

Financials

Quadrant Future Tek has demonstrated consistent revenue generation with varying profit margins over the past few years. Below is a summary of their financial performance:

Strengths

• Technological Innovation: The company is engaged in the development of Automatic Train Protection Systems, including the KAVACH project, enhancing railway safety.
• Strategic Partnerships: An exclusive Memorandum of Understanding with RailTel to pursue KAVACH opportunities in Indian Railways and international markets.
• Advanced Manufacturing Capabilities: In-house design and product development capabilities, along with advanced cable manufacturing technology, meeting stringent standards for various sectors.

Risks

• Client Concentration: A significant portion of revenue is derived from a limited number of clients, posing a concentration risk.
• Regulatory Environment: Operations are subject to stringent regulations; any policy changes could impact business activities.
• Technological Advancements: The need for continuous innovation to keep pace with technological changes may require substantial investment.

IPO Anchor Investors Details

The anchor investor bidding is scheduled to commence on January 6, 2025. Details regarding the anchor investors will be disclosed closer to this date.

IPO Promoter Holding

Note: Specific pre-issue holding percentages for each promoter are not provided in the available sources.

IPO Grey Market Premium (GMP)

As of the latest available information, there is no reported Grey Market Premium (GMP) for Quadrant Future Tek’s IPO. Investors should note that GMP is subject to change and may fluctuate based on market conditions.

Quadrant Future Tek Ltd’s IPO presents an opportunity to invest in a company at the forefront of railway signaling and train control systems in India. With a focus on technological innovation and strategic partnerships, the company is well-positioned for growth. However, potential investors should carefully consider the associated risks, including client concentration and the need for continuous technological advancements. Conducting thorough due diligence and consulting with financial advisors is recommended before making investment decisions.