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PremiumQuadrant Future Tek IPO Day 2 Live Updates: Quadrant Future Tek Ltd's initial public offering was entirely subscribed within minutes of its share sale launch on Tuesday, concluding the day with a subscription rate of 15.84 times, according to BSE data. The segment allocated for Retail Individual Investors (RIIs) achieved a subscription rate of 54.84 times, while the portion for non-institutional investors saw a subscription rate of 21.51 times. The share allocation for Qualified Institutional Buyers (QIBs) was subscribed at a rate of 5 percent.
Quadrant Future Tek Ltd began its public subscription on Tuesday, January 7. The company has set the price range for its ₹290-crore initial public offering (IPO) between ₹275 and ₹290 per equity share, which will run until Thursday, January 9.
On Monday, Quadrant Future Tek announced that it had secured over ₹130 crore from anchor investors just a day prior to opening its initial share sale to the public. The entire ₹290-crore initial public offering consists solely of a new issue with no portion dedicated to an offer for sale.
The funds raised from this issuance will be directed towards fulfilling long-term working capital needs. The proceeds from the IPO will also contribute to capital expenditures related to the development of the electronic interlocking system, repayment of debt, and the remainder will be utilized for general corporate purposes.
Quadrant is a research-driven company focused on creating advanced train control and signaling systems as part of the Indian Railways’ KAVACH project, which provides the utmost safety and reliability for rail travelers. Additionally, the company operates a specialized cable manufacturing facility that includes an electron beam irradiation center, producing cables that are utilized in railway rolling stock and the naval defense sector.
The company has a dedicated facility for manufacturing testing, researching, and developing speciality cables and producing the hardware required for the Train Control and Signalling Division. This facility is located at Village Basma, District Mohali.
Quadrant Future Tek Limited is a research-oriented organization engaged in developing next generation Train Control and Signalling Systems under the KAVACH project of the Indian Railways. These systems offer the highest level of safety and reliability to rail passengers. The company operates a speciality cable manufacturing facility equipped with an Electron Beam Irradiation Centre. The speciality cables manufactured by the company are used in railway rolling stock and the naval (defence) industry.
The company's listed peers are Kernex Micro Systems Ltd, HBL Power Systems Ltd (with a P/E of 61.59), Apar Industries Ltd (with a P/E of 49.11), and Polycab India Ltd (with a P/E of 64.85).
The issue is valued at a price-to-earnings (P/E) ratio of 59.1x on the upper price band based on FY24 earnings, which is deemed fair compared to its peers. Considering the above compelling factors, we recommend a "SUBSCRIBE" rating for this issue.
On Monday, Quadrant Future Tek announced that it has secured more than ₹130 crore from anchor investors a day prior to the opening of its initial public offering (IPO) for public subscription.
The investors included WhiteOak Capital Mutual Fund, Kotak Mutual Fund, LIC Mutual Fund, Bank of India Mutual Fund, Citigroup Global Markets Mauritius, Ashoka WhiteOak ICAV, Bengal Finance and Investments Shubhkam Venture (I) Pvt Ltd, and Capri Global Capital, among several others, as stated in a circular published on the BSE's website.
The circular indicated that Quadrant Future Tek has allocated 45 lakh equity shares to 22 entities at a price of ₹290 per share, which represents the upper limit of the price range.
Quadrant Future Tek IPO GMP today is +210. This indicates Quadrant Future Tek share price was trading at a premium of ₹210 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Quadrant Future Tek share price is indicated at ₹500 apiece, which is 72.41% higher than the IPO price of ₹290.
Analyzing the grey market activities from the past 9 sessions, the IPO's GMP shows an upward trend today, indicating a robust listing. The minimum GMP recorded is ₹0, while the maximum GMP stands at ₹210, as per insights from investorgain.com experts.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
