Quadrant Future Tek Limited is preparing to launch its initial public offering (IPO) from January 7 to January 9, 2025, aiming to raise approximately ₹290 crores. The company specializes in providing advanced electronic interlocking systems and solutions, catering primarily to the transportation and infrastructure sectors. With a fresh issue of ₹290 crores, the IPO will help fund long-term working capital requirements and capital expenditures for expanding its technological capabilities.
₹110
₹290
₹370.00
Expert Opinions
Market sentiment for the Quadrant Future Tek IPO is optimistic, fueled by increasing interest in advanced technology solutions for the transportation sector. Company strengths include its focus on developing cutting-edge train control and signaling systems, which are essential for enhancing railway safety and efficiency. The company has demonstrated strong financial performance, with revenue growth from ₹104.29 crores in FY22 to ₹152.95 crores in FY23, alongside a substantial profit increase, indicating effective management and operational efficiency.
However, risks and challenges include potential competition from established players in the technology sector and reliance on government contracts, which can be subject to delays. Valuation analysis should consider the projected EPS to establish the P/E ratio post-IPO, helping investors compare with industry peers. Funds raised will support long-term working capital and the development of an electronic interlocking system, potentially boosting profitability and efficiency. From a long-term investment perspective, Quadrant Future Tek is well-positioned to benefit from growing infrastructure investments in India.
Investor Considerations
Company performance and fundamentals indicate robust growth, with revenue increasing from ₹104.29 crores in FY22 to ₹152.95 crores in FY23, alongside a significant profit rise from ₹1.94 crores to ₹13.90 crores, highlighting effective management and operational efficiency. The sector outlook is promising, driven by government initiatives in infrastructure development and a projected growth rate of 7.9% for the industrial sector in FY24, which bodes well for companies like Quadrant Future Tek that specialize in advanced signaling systems.
IPO valuation should be evaluated based on the projected ₹151.75 crores in revenue, considering the company’s growth strategy and market potential in train control and signaling systems. Growth prospects are enhanced by increasing demand for safety and reliability in transportation systems. However, potential risk factors include competition and reliance on government contracts. A long-term investment horizon is advisable, as the company is well-positioned to capitalize on industry trends while managing inherent risks effectively.
| Date | GMP | Trend |
|---|---|---|
| 13 Jan 2025 16.17 | ₹110 | Down |
| 12 Jan 2025 16.31 | ₹150 | --- |
| 11 Jan 2025 12.37 | ₹150 | Down |
| 10 Jan 2025 11.05 | ₹190 | --- |
| 09 Jan 2025 19.12 | ₹190 | Down |
| 08 Jan 2025 10.59 | ₹210 | Up |
| 07 Jan 2025 10.44 | ₹200 | Up |
| 06 Jan 2025 10.51 | ₹180 | --- |
| 05 Jan 2025 10.06 | ₹180 | Up |
| 04 Jan 2025 11.44 | ₹00 | --- |
| 03 Jan 2025 10.54 | ₹00 | --- |
| 02 Jan 2025 10.38 | ₹00 | --- |
| 01 Jan 2025 10.58 | ₹00 | --- |
| 31 Dec 2024 10.38 | ₹00 | --- |
| 30 Dec 2024 13.23 | ₹00 | --- |
FAQs
The Grey Market Premium showed good accuracy in predicting Quadrant Future Tek’s listing performance. While the GMP of ₹110 predicted a premium of 37.93% over the issue price, the stock delivered a gain of 27.59%. With a relatively small prediction error of 7.50%, the GMP correctly predicted both the positive listing direction and approximate magnitude of gains, though slightly overestimated the final listing premium.
Quadrant Future Tek IPO Current GMP is ₹110.
Quadrant Future Tek IPO Expected Returns is 37.93%.
Quadrant Future Tek IPO estimated listing price is ₹400.