Quadrant Future Tek Limited IPO Review

Quadrant Future Tek Limited IPO Review

Key Highlights

• IPO Opening Date: January 7, 2025
• IPO Closing Date: January 9, 2025
• Price Band: To be announced
• Issue Size: ₹290 crore
• Grey Market Premium (GMP): Information currently unavailable

About Quadrant Future Tek Limited

Quadrant Future Tek Limited is a technology and innovation-driven company specializing in the development of new-generation train control and signaling systems. Certified to ISO/IRIS/TS Quality Management Systems, the company operates state-of-the-art production facilities in Mohali, Punjab, and maintains engineering centers in Bangalore and Hyderabad.

IPO Details

• Fresh Issue: ₹290 crore
• Face Value: ₹10 per share
• Lot Size: To be announced
• Listing At: BSE and NSE
• Promoter Holding Pre-IPO: 93.33%
• Promoter Holding Post-IPO: Data not specified

Important Dates

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

Objectives of the IPO

• Funding Long-Term Working Capital Requirements: To support the company's operational needs.
• Capital Expenditure for Development of Electronic Interlocking System: To enhance product offerings.
• Repayment of Borrowings: To strengthen the company's financial position by reducing debt.
• General Corporate Purposes: To support overall business growth and development.

Financial Performance

For the fiscal year ending March 31, 2023, Quadrant Future Tek reported a revenue from operations of ₹1,528.04 lakh and a profit after tax of ₹139.04 lakh. The company has shown consistent growth over the past few years, with a return on equity of 61.76% for the same period.

Risks and Considerations

• Market Competition: The technology sector, particularly in train control and signaling systems, is highly competitive, with several established players.
• Financial Leverage: The company plans to use a portion of the IPO proceeds to repay existing borrowings, indicating current debt levels that investors should consider.
• Dependence on Specific Industry: A significant portion of the company's revenue is derived from the railway sector, making it susceptible to industry-specific downturns.

Conclusion

Quadrant Future Tek Limited's IPO presents an opportunity to invest in a technology-driven company with a focus on the railway sector. Potential investors should carefully evaluate the company's financial performance, market position, and the intended use of IPO proceeds when making investment decisions.