Quadrant Future Tek Share Price, IPO Listing Highlights: Check GMP, allotment, price band and key details

Sundae Capital Advisors served as the book-running lead manager for the Quadrant Future Tek IPO, with Link Intime India Private Ltd acting as the registrar for the issue.

The price band for Quadrant Future Tek IPO was Rs 275 to Rs 290 per share. Retail investors needed a minimum investment of Rs 14,500 for 50 shares. sNII required 700 shares (14 lots) for Rs 2,03,000, and bNII needed 3,450 shares (69 lots) for Rs 10,00,500. The IPO has been successfully listed.

“Quadrant Future Tek listing was healthy but slightly below street expectations. We believe the demand was on the back of Quadrant Future Tek being a niche player specializing in advanced railway signalling systems and specialty cables and a key contributor to the modernization of Indian Railways under the KAVACH initiative and diversified portfolio, including specialty cables for the railway, defence, solar energy and EV sectors, showcases its adaptability to emerging industries and sustainability trends and well positioned as a critical supplier for OEMs,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

“Considering the market volatility, we recommend conservative allotted investors can think of booking profits. While long term investors should consider to HOLD IT FOR LONG TERM despite knowing short term volatility post listing & risk in the markets. For non-allotted investors, we advise to accumulate if we get dips post listing due to profit booking attempts,” added Tapse.

As of 11:26 AM IST, the shares of the company are trading at Rs 448.75 on the BSE, up by 74.74 points or 19.99%. Similarly, on the NSE, the shares are trading at Rs 444.00, up by 74.00 points or 20%.

For the financial year ending March 31, 2024, Quadrant Future Tek reported a slight dip in revenue, which decreased by 1% compared to the previous year (March 31, 2023). However, the company saw a 6% increase in its profit after tax (PAT).

Quadrant Future Tek shares made a strong debut, listing at Rs 370 on the NSE, up 27.5% from the IPO price. On the BSE, the shares were listed at Rs 374, marking a 29% increase.

“The company is valued at FY24 P/E multiple of 79.0x at post issue capital of upper price band. The company’s Revenue/EBITDA/PAT achieved CAGR of 20.6%/96.5%/175.2% to Rs 152 cr/Rs 37 cr/Rs 15 cr during FY22-FY24 period. Among peers, the company leads with an EBITDA margin of 24.1% in FY24 and its return ratios are equally competitive. The industry forecast indicates a robust growth for the Indian Specialty Cable and Train Control System market projected to expand at a CAGR of 9.8% and 12.7% from CY24E-CY30E period. Additionally, the strategic MoU signed with RailTel Corp. to provide KAVACH coupled with recent order win from Chittaranjan Locomotive Works (CLW) of Rs 978.6 cr, solidifies the company’s position as a premier Original Equipment Manufacturer (OEM). Given these compelling factors, we recommend the investors to subscribe the issue,” said SBI Securities in an IPO note.

Sundae Capital Advisors served as the book-running lead manager for the Quadrant Future Tek IPO, with Link Intime India Private Ltd acting as the registrar for the issue.

The allotment for the Quadrant Future Tek IPO was finalised on Friday, January 10. Investors who participated can check their allotment status through BSE, NSE, or Link Intime.

Quadrant Future Tek, founded in September 2015, works on advanced Train Control and Signaling Systems for the Indian Railways‘ KAVACH project. This system is designed to improve passenger safety and make train operations more reliable. The company also has a facility for making special cables, which includes an Electron Beam Irradiation Centre for high-tech manufacturing.