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Quadrant Future Tek share posts steady debut; lists at 29% premium

Quadrant Future Tek shares listed at Rs 374 on the BSE, a premium of Rs 84 or 28.9 per cent over the issue price of Rs 290

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Kumar Gaurav New Delhi

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Quadrant Future Tek IPO listing: Shares of Quadrant Future Tek, a developer of advanced train control and signaling systems, made a steady debut on Tuesday, January 14, 2025, following the completion of its initial public offering (IPO). Quadrant Future Tek shares listed at Rs 374 on the BSE, a premium of Rs 84 or 28.9 per cent over the issue price of Rs 290. On the National Stock Exchange (NSE), it debuted at Rs 370, reflecting a premium of Rs 80 or 27.5 per cent above the issue price.  ALSO READ: Delta Autocorp shares list at 35% premium, hits 5% upper circuit later
 
 
Thus, the investors who received shares in the IPO earned listing gains of up to Rs 84 per share, representing a return of nearly 29 per cent. 
 
Quadrant Future Tek IPO listing was below the grey market expectations. Ahead of listing, the company's shares were trading at Rs 410 in the grey market, reflecting a premium of Rs 120 or 41.38 per cent over the issue price. 
Regarding the Quadrant Future Tek listing, Shivani Nyati, head of wealth at Swastika Investmart, said it marked a successful stock market debut. "The Quadrant Future Tek IPO generated significant investor interest, with a strong subscription," Nyati added. Citing the company's strong historical growth but noting that recent half-year results have been negative, Nyati suggested that IPO participants may book a portion of their profit and hold with a stop loss of Rs 330.
 
Quadrant Future Tek's listing was healthy but slightly below street expectations, said Prashanth Tapse, senior VP (Research) at Mehta Equities. Tapse believes the demand was on the back of Quadrant Future Tek being a niche player specializing in advanced railway signalling systems and specialty cables and a key contributor to the modernization of Indian Railways under the KAVACH initiative, and diversified portfolio, including specialty cables for the railway, defence, solar energy and EV sectors, showcases its adaptability to emerging industries and sustainability trends, and well positioned as a critical supplier for OEMs.
 
Considering the market volatility, Tapse recommended that conservative allotted investors consider booking profits. While long-term investors, Tapse said, should consider holding for the long term despite short-term volatility post-listing and risks in the markets. For non-allotted investors, Tapse advised accumulating if there are dips post-listing due to profit-booking attempts.
 
The Rs 290-crore IPO was open for subscription from January 7 to January 9, 2025, with a price band of Rs 275–290 per share and a minimum lot size of 69 shares. The issue was oversubscribed 186.66 times, according to NSE data. Non-institutional investors (NIIs) led the demand, oversubscribing their category by 254.71 times, followed by retail individual investors (RIIs) at 246.94 times, and qualified institutional buyers (QIBs) at 132.54 times. The basis of allotment of Quadrant Future Tek IPO shares was finalised on January 10, 2025.
 
According to the company's Red Herring Prospectus (RHP), the IPO proceeds will be used for long-term working capital requirements, capital expenditure for developing an electronic interlocking system, and prepayment or repayment of working capital term loans. A portion will also be allocated to general corporate purposes.
 
Link Intime India acted as the IPO registrar, while Sundae Capital Advisors served as the sole book-running lead manager.
 
Quadrant Future Tek specialises in developing train control and signaling systems, including the KAVACH project under Indian Railways. The company also operates a specialty cable manufacturing facility with an Electron Beam Irradiation Centre, producing cables for railways' rolling stock and the naval defense sector.
 

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First Published: Jan 14 2025 | 10:06 AM IST

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