Quadrant Future Tek Shares Debut At 29% Premium Over Issue Price
The company will use the IPO proceeds towards funding its long-term working capital requirements.
Quadrant Future Tek Ltd. debuted on the BSE at Rs 374 apiece, a premium of 28.97% over the issue price of Rs 290 per share. The stock listed on the National Stock Exchange at Rs 370 per share, marking a premium of 27.59%.
The Rs 290-crore initial public offering of Quadrant Future was subscribed 186.66 times on the final day, led by non-institutional investors. The maiden issue consists entirely of a fresh issue of 1 crore shares, with the company aiming to raise up to Rs 290 crore.
The price band for the IPO was set in the range of Rs 275–290 per share.
The proceeds raised from the fresh issue of shares will be utilised towards funding long-term working capital requirements of the company, capital expenditure for the development of the electronic interlocking system, repayment or prepayment of borrowings, and general corporate purposes.
Sundae Capital Advisors Pvt. Ltd. was the book-running lead manager of the Quadrant Future Tek IPO, while Link Intime India Pvt. Ltd. is the registrar for the issue.
The dependency on a single manufacturing facility which exposes it to certain manufacturing process risks and its operation in specific sectors are among the key risks for investors.
Quadrant specialises in advanced solutions, including specialty cables and train control systems, with a focus on innovative technologies like Kavach Ver. 4.0 for railway networks.
Incorporated in September 2015, Quadrant Future Tek develops next-generation train control and signalling systems for the Indian Railways' 'Kavach' project. This system aims to enhance safety and reliability for passengers.
It also operates a specialty cable manufacturing facility with an Electron Beam Irradiation Centre, producing cables for railway rolling stock and the naval defence industry.
