Quadrant Future Tek IPO Day 2: Check subscription, price band, GMP and review
The Rs 290 crore issue, which is completely a fresh equity issue of 1 crore shares, will be available for bidding till January 9.
Funds from the IPO will be used to support long-term working capital needs for the specialty cable division, capital expenditure for developing an electronic interlocking system, repayment of working capital term loans, and general corporate purposes.
Check Quadrant Future Tek IPO price band
The company has fixed a price band of Rs 275-290 per share, where investors can bid for 50 shares in one lot and in multiples thereafter.
GMP of Quadrant Future Tek IPO
Ahead of the issue opening, Quadrant Future Tek GMP is robust at Rs 170, which indicates a premium of 59% over the issue price.
Quadrant Future Tek IPO: Should you subscribe or not?
Analysts advised investors to subscribe to the issue as the industry forecast indicates a robust growth for the Indian Specialty Cable and Train Control System market and the company is well poised to capitalise on the opportunities.
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The company is valued at FY24 P/E multiple of 79x at post issue capital of upper price band.
“A strategic MoU with RailTel Corp and a Rs 78.6 crore order from Chittaranjan Locomotive Works strengthen the company’s position as a leading original equipment manufacturer (OEM). The issue valuations are deemed fair compared to its peers. we recommend a ‘Subscribe’ rating for this issue,” said BP Wealth.
About Quadrant Future Tek IPO
Quadrant Future Tek is a research-oriented company developing next generation Train Control and Signalling Systems under the KAVACH project for the Indian Railways. It also operates a specialty cable manufacturing facility with an Electron Beam Irradiation Centre, producing cables for railway rolling stock and the naval defense industry.
The facility supports the end-to-end production of Solar and EV cables and includes areas for manufacturing, testing and developing specialty cables and hardware for the Train Control and Signalling Division.
In FY24, the company has reported 1% YoY fall in revenue and 6% growth in PAT (Profit After Tax).
Sundae Capital Advisors is the book-running lead manager, while Link Intime India Ltd will serve as the registrar for this offering, handling the allotment and other processes.
When is the allotment and listing date of Quadrant Future Tek?
The allotment for the Quadrant Future Tek IPO is expected to be finalised on January 10 and the listing of shares will be on January 14.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
