Wed Jan 08 11:40:09 UTC 2025: ## Quadrant Future Tek IPO Oversubscribed on Day 2

**MUMBAI, INDIA – January 8, 2025** – Quadrant Future Tek Ltd.’s initial public offering (IPO) continued its strong performance on its second day, exceeding expectations with a significant oversubscription. By the close of trading, the IPO was oversubscribed by 48.57 times, according to BSE data.

The ₹290 crore IPO, offering shares priced between ₹275 and ₹290, saw exceptionally high demand from retail individual investors (RIIs), with their portion oversubscribed by 136.06 times. Non-institutional investors also showed strong interest, with their allocation oversubscribed by 86.46 times. While Qualified Institutional Buyers (QIBs) showed less enthusiasm, their portion was still 46% subscribed.

The company, a research-driven firm specializing in advanced train control and signaling systems (including the KAVACH project for Indian Railways) and specialty cables for railways and defense, had already secured over ₹130 crore from anchor investors before the IPO opened. Proceeds from the IPO will fund long-term working capital, capital expenditures for developing electronic interlocking systems, debt repayment, and general corporate purposes.

Despite the overwhelmingly positive response, analysts note the small issue size and limited retail quota, suggesting limited allotment chances for retail investors. Concerns were also raised regarding the company’s reliance on related-party transactions, which constituted a significant portion of its revenue in recent years.

While the high oversubscription and strong grey market premium (GMP) of ₹210, indicating a potential listing price of ₹500, point to investor optimism, potential investors should consider the risks associated with the company’s relatively high reliance on a single major client and the limited diversification of its revenue streams. The company’s growth is heavily tied to the success of the KAVACH project and continued orders from Indian Railways.

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