Introduction

Quadrant Future Tek Limited, a company known for its innovative contributions to the railway signaling and control industry, is all set to launch its Initial Public Offering (IPO) to raise ₹290 Crores. The IPO will be a book-built issue entirely consisting of a fresh issue of 1.00 crore shares. The subscription window for the IPO will open on January 7, 2025, and close on January 9, 2025, with the listing expected on January 14, 2025. Here's everything you need to know about this IPO.

IPO Details

• IPO Date: January 7, 2025 to January 9, 2025
• Listing Date: January 14, 2025
• Face Value: ₹10 per share
• Price Band: ₹275 to ₹290 per share
• Lot Size: 50 Shares
• Total Issue Size: ₹290 Crores (1,00,00,000 shares)
• Fresh Issue: ₹290 Crores (1,00,00,000 shares)
• Issue Type: Book Built Issue IPO
• Listing At: BSE, NSE
• Pre-Issue Shareholding: 93.33%
• Post-Issue Shareholding: 70%

IPO Reservation Details

• Total Shares Offered: 1,00,00,000 (100%)
• Anchor Investors: 45,00,000 shares (45%)
• Qualified Institutional Buyers (QIB): 30,00,000 shares (30%)
• Non-Institutional Investors (NII): 15,00,000 shares (15%)
  • bNII (HNI): 10,00,000 shares (10%)
  • sNII (HNI): 5,00,000 shares (5%)
• Retail Investors (RII): 10,00,000 shares (10%)

IPO Subscription Schedule

• IPO Open Date: Tuesday, January 7, 2025
• IPO Close Date: Thursday, January 9, 2025
• Basis of Allotment: Friday, January 10, 2025
• Initiation of Refunds: Monday, January 13, 2025
• Credit of Shares to Demat Account: Monday, January 13, 2025
• Listing Date: Tuesday, January 14, 2025
• Cut-off Time for UPI Mandate Confirmation: 5 PM on January 9, 2025

Investment Details

Investors can bid for a minimum of 50 shares and in multiples of 50 thereafter. Here's a breakdown of the minimum and maximum investment amounts:

Promoter Holding

• Pre-Issue Shareholding: 93.33%
• Post-Issue Shareholding: 70%

Company Overview

Quadrant Future Tek, incorporated in September 2015, specializes in the development of next-generation Train Control and Signaling Systems. The company plays a pivotal role in the Indian Railways’ KAVACH project, a safety system aimed at enhancing passenger security and operational reliability. Additionally, Quadrant Future Tek manufactures specialty cables and other components for the railway sector at its facility in Punjab.

The company's innovations also extend to Automatic Train Protection Systems, and it has entered into an exclusive MOU with RailTel to pursue KAVACH opportunities for both Indian Railways and global markets.

Financial Performance

Quadrant Future Tek has shown steady growth despite challenges. Here's a snapshot of its financial performance over the last few years:

Key Performance Indicators (KPI)

• Market Capitalization: ₹1160 Crore
• ROE (Return on Equity): 33.41%
• ROCE (Return on Capital Employed): 26.12%
• Debt/Equity Ratio: 1.86
• PAT Margin: 9.68%
• Price to Book Value (P/BV): 19.73

Use of Proceeds from IPO

The funds raised through the IPO will be used for the following purposes:

1. Long-term working capital requirements.
2. Capital expenditure for the development of the Electronic Interlocking System.
3. Prepayment or repayment of outstanding working capital loans.
4. General corporate purposes.

Conclusion

The Quadrant Future Tek IPO presents an exciting opportunity for investors looking to invest in a company that's at the forefront of technological development in the railway sector. With strong financial growth and an ambitious future roadmap, this IPO could be a valuable addition to your portfolio. Remember to stay updated with the latest IPO news, and consider your investment goals before making any decisions.