Upcoming IPO: Quadrant Future Tek gets SEBI nod to launch ₹275 crore IPO

Quadrant Future Tek Limited, headquartered in Mohali, has been issued final observation by the Securities and Exchange Board of India (SEBI), allowing them to raise ₹275 crore through an initial public offering (IPO). The company submitted its IPO documents to SEBI on June 2, 2024.

A research-focused company founded in 2015, Quadrant Future Tek is creating next-generation train control and signalling systems that provide rail passengers with the highest level of safety and dependability. The company also has an electron beam Irradiation Centre and an irradiated/E-beam cable manufacturing facility.

The firm provides speciality cables to the navy (defence) sector and railroad rolling equipment. Additionally, it has an end-to-end infrastructure capable of creating solar and electric vehicle cables at its production plant. Bengaluru, Karnataka, Hyderabad, and Telangana are home to the Railway Signalling & Embedded System Design Centre, while the company's production activities are headquartered in Basma, Mohali.

The company's main clients are in the defenceand railway industries. 74.05% of the company's revenue as of December 31, 2023, came from Wires and Cables (Railways), and 25.08% from Wires and Cables (Defense).

Issue Details

The initial public offering consists of new shares with a face value of ₹10 each, totalling up to ₹275 crore.

The funds raised from the new shares will be allocated as follows: ₹175 crore for the company's long-term working capital needs, ₹25 crore for the development of the Electronic Interlocking System, ₹25 crore for the prepayment or partial repayment of the outstanding working capital term loan availed by the company, and for general corporate purposes.

Sundae Capital Advisors Private Ltd has been appointed as the sole book-running lead manager, while Link Intime India Private Limited has been designated as the registrar of the issue.

Financials

Revenue from operations for Quadrant grew by 46.56% to ₹152.80 crore in the fiscal year 2023 from ₹104.26 crore in the previous year. This rise was mostly attributable to higher sales of wires and cables to the railway and defense industries. From ₹1.94 crore in the fiscal year 2022 to ₹13.90 crore in the fiscal year 2023, profit after taxes increased.

For the nine months ending December 30, 2023, income from operations reached at ₹100.37 crore and profit after tax stood at ₹14.42 crore.

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