The Quadrant Future Tek IPO made a big splash in the market on its first day! It got lots of attention and was fully subscribed just hours after it opened for bidding. By the end of Day 1, the overall subscription stood at an impressive 16 times, with the retail category seeing a whopping 54 times subscription and the Non-Institutional Investor (NII) portion at 21 times!
This IPO aims to raise Rs 290 crore by offering 1 crore new shares. It will be open for bidding until January 9. The money raised will help the company in various ways, like upgrading its specialty cable business, investing in new tech for train safety, paying off loans, and covering general expenses.
What’s the Price?
The company has set a price between Rs 275 and Rs 290 per share. Investors can bid for 50 shares at a time and in multiples afterwards.
Strong Demand Before the IPO
Before it even started, the Grey Market Premium (GMP) for Quadrant Future Tek was a strong Rs 170, suggesting a significant premium of 59% over its issue price.
Should You Buy Shares?
Experts are recommending that investors subscribe to this IPO. They believe that the Indian market for specialty cables and train control systems is set to grow, and Quadrant Future Tek is in a great position to take advantage of this. The company is evaluated at a FY24 price-earnings (P/E) ratio of 79x which is considered reasonable compared to similar companies. They also recently signed a deal with RailTel Corp and bagged a Rs 78.6 crore order from Chittaranjan Locomotive Works, solidifying their status as a leading manufacturer.
About Quadrant Future Tek
Quadrant Future Tek is all about innovation. They’re working on advanced train control and signaling systems for Indian Railways and also produce specialty cables for the rail and navy industries. Their production facility supports making, testing, and developing high-quality cables.
In FY24, the company saw a slight drop (1%) in revenue but a 6% increase in Profit After Tax (PAT).
Sundae Capital Advisors is leading the offering, and Link Intime India Ltd will handle the allocation and other important processes.
Important Dates
The allotment of shares will likely be finalized on January 10, and shares are expected to be listed on January 14.
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