Quadrant Future Tek Limited IPO: 10 Key Insights for Investors
Quadrant Future Tek Limited, a promising player in the railway technology and specialty cable manufacturing sector, is gearing up to launch its ₹290 Crore Initial Public Offering (IPO) from January 7th to January 9th, 2025. With its focus on next-generation train control systems and advanced manufacturing technologies, the company offers an intriguing opportunity for investors looking to tap into India’s growing infrastructure and technology sectors.
Here are the 10 key things you should know before investing in the Quadrant Future Tek Limited IPO:
What makes Quadrant Future Tek a good opportunity?
Quadrant Future Tek Limited specializes in developing advanced Train Control and Signaling Systems, notably for the Indian Railways’ KAVACH project, a significant safety and reliability initiative. The company also manufactures specialty cables for diverse applications, including railways, defense, renewable energy, and electric vehicles.
Its in-house design and development capabilities, adherence to strict quality standards, and focus on innovation make it a standout player in its industry. Moreover, the company has entered into an exclusive Memorandum of Understanding with RailTel to explore KAVACH opportunities, further enhancing its market potential.
What are the IPO dates, price band, and issue size?
Here are the key details of the IPO:
- IPO dates: January 7th – January 9th, 2025
- Listing date: January 14th, 2025
- Price band: ₹275 – ₹290 per share
- Total issue size: ₹290 Cr
- Face value: ₹10 per share
- Listing Exchange: BSE, NSE
- Lot size: 50 Shares
- Promoters: Mohit Vohra, Amit Dhawan, Amrit Singh Randhawa, Rupinder Singh, Vishesh Abrol, Vivek Abrol, Aikjot Singh, and Rajbir Singh Randhawa
What is the minimum investment for the IPO?
The minimum investment required to apply for the Quadrant Future Tek IPO is ₹13,750, based on the lot size of 50 shares at the lower price band of ₹275 per share. However, to increase your chances of allotment, we recommend applying at the upper price band, which would require ₹14,500 (50 shares at ₹290 per share).
What does the company do?
Incorporated in September 2015, Quadrant Future Tek Limited is at the forefront of railway technology and specialty cable manufacturing.
- Services: Development of Automatic Train Protection Systems (KAVACH project), manufacturing specialty cables, and advanced hardware.
- Operations: A state-of-the-art facility in Punjab with a focus on innovation and quality.
- Clientele: Serves sectors like railways, defense, renewable energy, and electric vehicles.
What is the objective of the IPO?
The proceeds from the Quadrant Future Tek IPO will be used for the following objectives:
- Funding long-term working capital requirements.
- Capital expenditure for developing an Electronic Interlocking System.
- Repayment of working capital term loans.
- General corporate purposes.
How much is reserved for retail and other investors?
The IPO allocation is as follows:
- Qualified Institutional Buyers (QIBs): Up to 75%
- Non-Institutional Investors (NIIs): At least 15%
- Retail Investors: At least 10%
What are the key strengths and risks?
Strengths:
- Exclusive MoU with RailTel for KAVACH projects.
- Advanced manufacturing facilities with ISO, IRIS, and TS standards.
- Broad applications of specialty cables across key industries.
- Focus on innovation and cost-effective solutions.
Risks:
- Litigation involving promoters in the past could raise governance concerns.
- Reliance on a single manufacturing facility.
- Rapid technological changes in served industries.
- Lack of contracts in the Train Control Systems segment despite significant investment.
What is the financial performance of Quadrant Future Tek?
The company’s financials over recent years are as follows (₹ in Crores):
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | ₹142.82 | ₹118.82 | ₹112.77 |
| Revenue | ₹151.82 | ₹152.95 | ₹104.29 |
| Profit After Tax | ₹14.71 | ₹13.9 | ₹1.94 |
What is the allotment and listing timeline?
- Basis of allotment: January 10, 2025
- Refund initiation: January 13, 2025
- Shares credited to demat accounts: January 13, 2025
- Listing date: January 14, 2025
Should you invest in Quadrant Future Tek Limited IPO?
Quadrant Future Tek Limited presents a compelling case with its focus on railway safety and advanced manufacturing. Its partnership with RailTel and strong technological base provide significant growth potential. However, the risks, including reliance on a single facility and untested ventures in Train Control Systems, should not be overlooked.
Evaluate your investment goals and risk tolerance before deciding to invest in this IPO.
