Quadrant Future Tek IPO ends with 186.66x subscription

The offer received bids for 108.26 crore shares as against 57.99 lakh shares on offer.

The initial public offer (IPO) of Quadrant Future Tek received 1,08,26,32,500 bids for shares as against 57,99,999 shares on offer. The issue was subscribed 186.66 times.

The Non-Institutional Investors (NIIs) category was subscribed 254.71 times. The Retail Individual Investors (RIIs) category was subscribed 246.94 times. The Qualified Institutional Buyers (QIBs) category was subscribed 132.54 times.

The issue opened for bidding on 7 January 2025 and it closed on 9 January 2025. The price band of the IPO is fixed between Rs 275 and 290 per share.

The initial public offer comprised only a fresh issue of equity shares of Rs 290 crore.

Of the net proceeds from the fresh issue of equity shares, about Rs 149.72 crore is towards funding long-term working capital requirements of the company; Rs 24.38 crore towards capital expenditure for development for the Electronic Interlocking System; Rs 23.62 crore towards prepayment or repayment of all or a portion of the outstanding working capital term loan availed by the company; and the balance towards general corporate purposes.

As of September 30, 2024, it had total borrowings (inclusive of fund-based and non-fund based, but excluding unsecured loans from promoters and promoter groups) of Rs 98.01 crore.

Ahead of the IPO, Quadrant Future Tek on Monday, 6 January 2025, raised Rs 130.50 crore from anchor investors. The board allotted 45 lakh shares at Rs 290 each to 22 anchor investors.

Quadrant Future Tek (QFTL) is engaged in the manufacture of specialty cables used in railway rolling stock and the naval (defence) industry. It specializes in manufacturing a wide range of Electron Beam Irradiated Cables for industrial usage and applications where fire and safety, light weight, and long-term performance are of utmost importance.

The company has also recently expanded its operations to build an indigenously developed Automatic Train Protection System that uses radio frequency identification to detect and stop a possible train collision under the Kavach project developed by the Research Designs & Standards Organisation (RDSO).

The firm reported a consolidated net loss of Rs 12.10 crore and sales of Rs 65.14 crore for the six months ended on 30 June 2024.

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