Quadrant Future Tek IPO : GMP, Price, Date, Review & Details

Quadrant Future Tek IPO - Complete Overview 

Quadrant Future Tek IPO a Mainboard IPO is a book-built issue of Rs.290 Cr (1 Cr Shares) by Quadrant Future Tek Limited incorporated in 2015. It specializes in state-of-the-art Train Control and Signaling Systems for the KAVACH project under Indian Railways and enhances safety and reliability for passengers. It also has an Electron Beam Irradiation Centre to create a speciality cable manufacturing facility.

The company is engaged in manufacturing, testing, and developing specialty Cables and Hardware for the Train Control & Signaling Division at its facility in Village Basma, Tehsil Banur, Distt Mohali.

The technology-driven company carries products: covering ISO, IRIS, and TS standards, and has stringent Quality Management Systems for specialty cables. Village Basma, Tehsil Banur, District Mohali, Punjab houses the company for manufacturing, testing, and development of specialty cables.

This new IPO is to be launched on 07 January 2025, and the initial public offering of this upcoming IPO will end on 09 January 2025.

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Quadrant Future IPO Details

The Rs.290 Crore Quadrant IPO comprises a wholly fresh issue of 1 Cr Shares. The IPO listing date is on January 14, 2024. Quadrant Future Tek IPO price is Rs.275 to Rs.290. 

If you want to apply for the IPO, Click Here to open a Demat Account.

Company Financial

Between FYs ended 31 March 2024 and 31 March 2023, the company's revenue fell by -1%, and PAT increased by 6%.

(Amount in Crore)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

Sales-wise Revenue from Operations

(Amount in millions)

(Source RHP)

The Objective of the Issue

• Financing the company's long-term operating capital needs

• Financial outlay for the creation of an electronic interlocking system

• Prepayment or partial repayment of the company's existing working capital term loan

• General Corporate Purposes

Peers of Quadrant Future Tek Limited

Evaluation

The Quadrant Future Tek IPO price is between Rs.275 to Rs.290 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.90 from the last year, the resulting P/E ratio is 59.18x. 

Considering the weighted EPS of Rs.4.09 for the last three years, the P/E ratio is 70.90x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 56.98x.

 

IPO's Strengths

• The Company is constantly innovating to develop Automatic Train Protection Systems.

• An exclusive Memorandum of Understanding has been signed with RailTel for KAVACH opportunities in Indian Railways and other countries' railways.

• World-class in-house design and product development capabilities support our Rail Signalling Products & Solutions.

• High-end cable manufacturing technology adheres to rigorous specifications for Railways, Naval Defence, Renewable Energy, and Electric Vehicle segments.

• State-of-the-art manufacturing facilities with the greatest variety of power and control cables focus on innovation and cost-effectiveness.

IPO’s Weaknesses 

• This internal conflict among the promoters tends to risk the smooth operations of the company in the future.

• Legal proceedings continue and could end up in monetary penalty punishment.

• A sole manufacturing facility becomes a risk for heavy production disruptions.

• Implicated criminal cases against the promoter directors can damage reputations.

Quadrant Future Tek IPO GMP

Quadrant Future Tek IPO GMP today has not started as of 31 December 2024.

Quadrant Future Tek Limited IPO Timetable (Tentative)

The Quadrant Future Tek IPO date is from 07 January to 09 January, with IPO allotment on 10 January, and refund initiation on 13 January 2025. The IPO listing date is on 14 January 2025.

 

IPO Other Details 

The IPO with a face value of Rs.10 per Share, offers an IPO size of 1,00,00,000 Shares (Rs.290 Cr) and it will be listed at BSE and NSE.

Quadrant Future Tek IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (50 Shares) amounting to Rs.14500 and 13 Lots (650 Shares) amounting to Rs.1,88,500 respectively, while for HNI investors, the minimum Lot is 14 (700 Shares) amounting to Rs.2,03,000.

IPO Reservation

Promoters and Management of Quadrant Future Tek Ltd. 

• Mohit Vohra

• Amit Dhawan

• Amrit Singh Randhawa

• Rupinder Singh

• Vishesh Abrol

• Vivek Abrol

• Aikjot Singh

• Rajbir Singh Randhawa.
  
  

IPO Lead Managers

• Sundae Capital Advisors.

• Dividend Policy

The company has not paid a dividend in the last three FYs.

Conclusion

Quadrant Future Tek IPO is backed by a technology-driven company that is highly concentrated in train control systems and specialty cables. Though it has proved itself to be strong in both innovation and manufacturing capabilities, the risks here are related to internal conflicts and legal proceedings. IPO proceeds shall mainly go into developing the company's growth, including the advanced rail signaling project. Evaluation of the financials, current industry position, and possible danger zones must be done before applying for this IPO.