Quadrant Future Tek IPO Opens Tomorrow: Check Details

Quadrant Future Tek IPO: Reservation Details

Quadrant Future Tek’s IPO will see a minimum of 75% of the net issue being reserved for qualified institutional buyers (QIBs). The portion reserved for non-institutional investors (NIIs) has been capped at 15% of the net issue. The company has reserved a maximum of 10% of the net issue for retail investors.

Quadrant Future Tek IPO: Price Band and Lot Size

Quadrant Future Tek’s IPO has a price band of ₹275 to ₹290 per share. The lot size for the issue is 50 shares. In order to apply to the Quadrant Future Tek IPO, an investor will have to make a minimum investment of ₹14,500. The minimum lot size for small and big high net-worth individuals is set at 14 lots and 69 lots, respectively.

About Quadrant Future Tek

Quadrant Future Tek was founded in September 2015. The company develops train control and signaling systems for the KAVACH project of the Indian Railways. Further, the company is also engaged in the manufacturing of specialty cable and has an Electron Beam Irradiation Centre at its manufacturing facility.  

The company will utilise the net proceeds of the IPO to meet the long-term working capital requirements. The funds will also be put toward capital expenditure for the development of the Electronic Interlocking System. In addition, the company will utilise the funds for partial or whole prepayment/payment of the company’s outstanding working capital term loan. Funds will also be used for general corporate purposes.

For the quarter ended September 30, 2024, the company reported a net loss of ₹12.11 crore. The company’s revenue for the quarter came in at ₹65.14 crore.

Key Strengths

•       The company is developing innovative solutions for the Automatic Train Protection System
•       Entered into a Memorandum of Understanding (MoU) with RailTel for business opportunities in relation to the KAVACH project.
•       In-house development and design capabilities.
•       Cost-effective and innovative manufacturing facilities. 

Key Risks

•       Since the company has only one manufacturing facility, the dependence on the facility is very high.
•       External risks such as the changing technological landscape and customer preferences.
•       The company’s financials could be severely impacted by the inability to meet the ₹978.6 crore purchase order it received in December 2024, from Chittaranjan Locomotive Works.

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