Wed Jan 08 07:54:45 UTC 2025: ## Quadrant Future Tek IPO Oversubscribed on Day 2

**MUMBAI, INDIA** – The initial public offering (IPO) of Quadrant Future Tek Ltd., a company specializing in advanced train control systems and specialty cables, continues to attract significant investor interest. By midday on the second day of its share sale, the IPO was oversubscribed by 32 times, according to BSE data. This follows an already impressive first day, where it was oversubscribed 15 times.

Retail Individual Investors (RIIs) demonstrated the strongest interest, with their portion of the offering subscribed 99.62 times by midday on day two. Non-institutional investors also showed high demand, with a subscription rate of 50.97 times. The Qualified Institutional Buyers (QIBs) portion reached a 9% subscription rate.

The ₹290 crore IPO, which opened on Tuesday, January 7th and closes Thursday, January 9th, consists entirely of a fresh issue. The company plans to use the funds for long-term working capital needs, capital expenditures for developing electronic interlocking systems, debt repayment, and general corporate purposes.

Quadrant Future Tek is a key player in the Indian Railways’ KAVACH project, providing crucial safety systems. It also manufactures specialty cables for the railway and naval defense sectors. While its specialty cable division currently accounts for the majority of revenue (with over 90% coming from Indian Railways), the company anticipates significant growth from its train control and signaling systems division. Concerns have been raised, however, about the company’s significant reliance on related-party transactions in the past.

Despite this, analysts have given the IPO a positive outlook, citing the company’s technological expertise, strong partnerships (including an exclusive agreement with RailTel), and the growing market for railway safety systems. The grey market premium currently indicates a potential listing price significantly above the IPO price. However, investors are cautioned to conduct their own due diligence before investing.

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