Tue Jan 07 22:21:54 UTC 2025: ## Quadrant Future Tek IPO Opens, Receives Strong Brokerage Support

**Mohali, India (January 7, 2025)** – Quadrant Future Tek, a provider of railway security solutions, launched its initial public offering (IPO) today, offering shares at ₹275-₹290 apiece. The IPO, which closes on January 9th, is entirely a fresh issue of 1 crore shares, raising ₹290 crore. Investors must bid for a minimum of 50 shares.

The company, incorporated in 2015, is a key player in the Indian Railways’ KAVACH project, developing next-generation train control and signaling systems. It also manufactures specialty cables with an Electron Beam Irradiation Centre. Proceeds from the IPO will fund working capital, capital expenditure for electronic interlocking systems, loan repayment, and general corporate purposes.

Quadrant Future Tek has already secured ₹130.5 crore from anchor investors, including prominent names like LIC MF, Bank of India MF, and Citigroup, at ₹290 per share. The company’s financials show a net loss of ₹12.11 crore for the six months ended September 30, 2024, but a net profit of ₹14.71 crore for FY23-24, with revenue of ₹151.82 crore. The IPO values the company at ₹1,160 crore.

The IPO allocation is 75% for qualified institutional bidders (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. Sundae Capital Advisors is the lead manager, and Link Intime India is the registrar. The shares are expected to list on the BSE and NSE on January 14th.

Multiple brokerage firms, including SBI Securities, KR Choksey Finserv, Canara Bank Securities, StoxBox, and Ventura Securities, have issued “subscribe” ratings for the IPO, citing strong growth prospects in the specialty cable and train control systems markets, the company’s technological advancements, and its strategic partnerships. They highlight Quadrant Future Tek’s robust financial performance and significant order wins as compelling reasons for investment, despite acknowledging a premium valuation compared to some peers.

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