Quadrant Future Tek

Quadrant Future Tek is gearing up to raise ₹290 crore through a fresh issue of 1 crore equity shares. The IPO will be open for subscription from January 7, 2025, to January 9, 2025, with the allotment expected to be finalized on January 10, 2025. The shares are tentatively scheduled to list on the BSE and NSE on January 14, 2025

Key Details:

• IPO Dates:
  • Open Date: January 7, 2025
  • Close Date: January 9, 2025
  • Listing Date: January 14, 2025
• Price Band: ₹275 – ₹290 per share
• Lot Size: 50 shares
• Issue Size: ₹290 crore (Fresh Issue)
• Lead Manager: Sundae Capital Advisors Private Limited
• Registrar: Link Intime India Private Limited

• Read DRHP Here

Timeline

IPO Open Date:	January 7, 2025
IPO Close Date:	January 9, 2025
Basis of Allotment:	January 10, 2025
Refunds:	January 13, 2025
Credit to Demat Account:	January 13, 2025
IPO Listing Date:	January 14, 2025

About Quadrant Future Tek IPO

Quadrant Future Tek is a technology-driven company specializing in the development and manufacturing of advanced railway signaling and train control systems. They are a key player in the Indian Railways’ ambitious “KAVACH” project, which aims to enhance railway safety through advanced signaling and train protection systems.¹⁰

Core Business:

• Railway Signaling and Train Control Systems: Development, manufacturing, and installation of advanced signaling and train control systems for railways.
• Specialty Cables: Manufacturing of specialized cables for railway applications, including rolling stock cables, overhead line cables, and signaling cables.

Market Position:

• Quadrant Future Tek is a leading player in the Indian railway signaling and train control systems market.
• The company has a strong focus on research and development and is actively involved in developing cutting-edge technologies.¹⁴

Future Outlook:

• The Indian Railways is undergoing significant modernization and expansion, creating significant growth opportunities for the company.
• The demand for advanced signaling and train control systems is expected to increase significantly in the coming years.
• Quadrant Future Tek aims to expand its product offerings and explore new market opportunities, both domestically and internationally.

Objective

The primary objectives of the Quadrant Future Tek IPO are:

• Funding Growth Initiatives: The proceeds from the fresh issue will be utilized to fund long-term working capital requirements of the Company.
• Capital Expenditure: Fund capital expenditure for the development of Electronic Interlocking System.
• Prepayment or Repayment of Debt: Prepayment or repayment of all or a portion of outstanding working capital term loan availed by the Company.
• General Corporate Purposes: Utilize the net proceeds for general corporate purposes.

By achieving these objectives, Quadrant Future Tek aims to strengthen its financial position, expand its operations, and capitalize on the growth opportunities within the Indian railway sector.its market position, enhance its service offerings, and drive long-term growth.

Quadrant Future Tek: Weighing the Pros and Cons

POSITIVE

• Growth Potential: The Indian Railways is undergoing significant modernization, creating strong growth prospects for companies specializing in railway signaling and train control systems.
• Government Focus: The Indian government is prioritizing railway infrastructure development, which will likely benefit companies like Quadrant Future Tek.
• “KAVACH” Project: The company’s involvement in the “KAVACH” project provides a significant competitive advantage.

Negatives

• Government Dependence: The company’s revenue is heavily dependent on orders from the Indian Railways, which can be subject to government policies and budgetary allocations.
• Competition: The railway signaling and train control systems market may face increased competition from both domestic and international players.
• Technological Disruptions: Rapid technological advancements in the railway sector could require significant investments in research and development to remain competitive.

So, How Does Quadrant Future Tek IPO Fare in Terms of Financials ?

Financial Review of Quadrant Future Tek IPO

Period Ended	Assets	Revenue	PAT	Net Worth	Reserves and Surplus	Total Borrowing
30 Sep 2024	149.66	65.14	-12.11	34.18	4.18	98.01
31 Mar 2024	142.82	151.82	14.71	44.11	34.11	81.61
31 Mar 2023	118.82	152.95	13.91	29.42	19.42	74.80
31 Mar 2022	112.77	104.29	1.94	15.61	5.61	80.68

(₹ Crore)

Key Observations:

Growth:

• Assets have grown steadily over the past three years, with a growth of 5.36% in 2023, 20.20% in 2024, and 4.79% in the quarter ending September 2024.
• Revenue has increased significantly from 2022 to 2023 but declined slightly in 2024. In the quarter ending September 2024, revenue has declined significantly.
• Profit after tax (PAT) has shown a positive trend, increasing from 2022 to 2024. However, there was a significant decline in the quarter ending September 2024.

Debt:

• Total borrowing has decreased from 2022 to 2024. However, there was a significant increase in the quarter ending September 2024.

Quadrant Future Tek IPO Valuation :

KPI	Values
ROE:	33.41%
ROCE:	26.12%
EBITDA Margin:	24.15%
PAT Margin:	9.68
Debt to equity ratio:	1.86
Earning Per Share (EPS):	4.90
Price/Earning P/E Ratio:	59.13
Return on Net Worth (RoNW):	33.41%
Net Asset Value (NAV):	₹14.70

SWOT Analysis of Quadrant Future Tek Limited

Strengths

• Focus on a Niche Market: Specialization in railway signaling and train control systems provides a niche advantage.
• “KAVACH” Project Involvement: Participation in the “KAVACH” project provides a significant competitive advantage and potential for future growth.
• Technology Expertise: Focus on research and development of advanced technologies in railway signaling.
• Government Focus: The Indian government’s emphasis on railway infrastructure development creates favorable growth opportunities.

Weaknesses

• Dependence on Indian Railways: Revenue is heavily reliant on orders from the Indian Railways, making the company susceptible to government policies and budgetary allocations.
• Limited Diversification: Relatively limited diversification beyond the railway sector.
• Competition: Facing competition from established players in the railway signaling and train control systems market.

Opportunities

• Expansion into New Markets: Exploring opportunities in other transportation sectors, such as metros and urban transit systems.
• Export Potential: Exploring international markets for railway signaling and train control systems.
• Technological Advancements: Developing and implementing cutting-edge technologies like AI and IoT in railway signaling systems.

Threats

• Government Budgetary Constraints: Government budget cuts could impact orders from the Indian Railways.
• Technological Disruptions: Rapid technological advancements could render existing technologies obsolete.
• Competition from International Players: Increased competition from global players could impact market share and profitability.

Competitive Analysis: Quadrant Future Tek IPO

Quadrant Future Tek operates in a competitive market with several key players:

• Medha Servo Controls: A leading player in the Indian railway signaling and train control systems market.
• Kernex Microsystems: Another significant player in the railway signaling and train control systems market.
• ABB: A global technology leader with a strong presence in the railway automation and electrification sector.
• Siemens: A global technology giant with a significant presence in the railway signaling and automation market.

Quadrant Future Tek IPO GMP

• Grey market premium as on 07-01-2025 = ₹ 210/Share

Disclaimer:

• IPO Grey Market Premium (Quadrant Future Tek IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Quadrant Future Tek IPO

🔴 Live Subscription Status 🔴

07/01/2025 12:30 PM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)	31,63,636	0.01
Non Institutional Investors(NIIs)	15,81,818	8.98
Retail Individual Investors(RIIs)	10,54,545	29.72
Employees	–	–
Total	57,99,999	7.86

FINAL TAKEAWAY

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