Upcoming IPO: Quadrant Future Tek gets Sebi nod for Rs 275-cr IPO; details

Quadrant Future Tek IPO is an entirely fresh issue of shares with a face value of Rs 10 per equity share, aggregating up to Rs 275 crore

Upcoming IPO alert! Technology and innovation-driven company, Quadrant Future Tek, has announced that it has received approval from the capital markets regulator, Securities and Exchange Board of India (Sebi), to raise Rs 275 crore through an initial public offering (IPO). Quadrant Future Tek had filed its IPO papers with Sebi on June 2, 2024.
 

The public issue is an entirely fresh issue of shares with a face value of Rs 10 per equity share, aggregating up to Rs 275 crore. Link Intime India is the registrar of the issue, while Sundae Capital Advisors is the sole book-running lead manager, the company said in a statement.
 

Quadrant Future Tek proposes to utilise the proceeds from the fresh issue to the extent of Rs 175 crore for funding long-term working capital requirements. The company will use Rs 25 crore for capital expenditure on Electronic Interlocking System development, and Rs 25 crore for prepayment or repayment of outstanding working capital term loans as well as for the general corporate purposes. 
 

Incorporated in 2015, Quadrant Future Tek is a research-oriented company engaged in developing next-generation Train Control and Signalling Systems. The company offers specialty cables for the railway rolling stock and naval (defence) industries.

Quadrant Future Tek's manufacturing operations are based in Basma, Mohali, and its Railway Signalling & Embedded System Design Centre is located in Bengaluru, Karnataka, and Hyderabad, Telangana.
 

According to the company's statement, Quadrant's revenue from operations increased by 46.56 per cent to Rs 152.80 crore in fiscal 2023 from Rs 104.26 crore in fiscal 2022, primarily due to increased sales of wires and cables to the railway and defence industries. The company's profit after tax grew from Rs 1.94 crore in financial year 2022 to Rs 13.90 crore in financial year 2023. For the nine months ended December 30, 2023, revenue from operations stood at Rs 100.37 crore, and profit after tax stood at Rs 14.42 crore.