Quadrant Future Tek IPO Subscription Status and GMP :The pace of subscription for Quadrant Future Tek IPO is at full speed. By around 3 pm on the second day of the IPO, it had been subscribed more than 42 times. At the same time, its gray market premium is indicating its high listing gains. Brokerage houses and experts are positive on this IPO. At present, you can subscribe till 9 January 2025. The size of the IPO is Rs 290 crore. Whereas the company has fixed the price band for this at Rs 275-290 per share.
Subscription Status: Subscribed 42 times so far
The IPO of Quadrant Future Tech Limited is getting strong response from investors. This IPO has been subscribed 42.2 times till 3 pm on the second day of launch. Of this, about 75 percent is reserved for Qualified Institutional Buyers (QIB) and so far it is 22 percent filled. In this, about 10 percent share is reserved for retail investors and till now it has been filled 124.97 times. Whereas the remaining 15 percent is reserved for Non-Institutional Investors (NII) and till now it has been filled 70.98 times.
Quadrant Future Tech: GMP
There is a lot of craze in the gray market regarding the IPO of Quadrant Future Tech Limited. The unlisted stock of the company is trading at a premium of Rs 210 in the gray market. This upper price band is 72 percent premium in terms of Rs 290. If we look at the current GMP indications, this stock may be listed at Rs 500 as compared to the IPO price of Rs 290.
SBI Securities: Subscribe
Brokerage house SBI Securities has advised to subscribe to the IPO. The brokerage house says that the valuation of the company has been done at P/E multiple of FY 2024 at the post issue capital of upper price band of 79.0x. The company’s Revenue, EBITDA and PAT achieved CAGR of 20.6%, 96.5% and 175.2% during the period FY22-FY24 and stood at Rs 152 crore, Rs 37 crore and Rs 15 crore, respectively. Among peers, the company leads with EBITDA margins of 24.1% in FY2024 and its return ratios are equally competitive.
The brokerage says the industry forecast indicates strong growth for the Indian specialty cable and train control systems market, which is projected to expand at a CAGR of 9.8% and 12.7% over the CY24E-CY30E period. Additionally, the strategic MoU with RailTel Corp to provide KAVACH and the recent order winning of Rs 978.6 crore from Chittaranjan Locomotive Works (CLW), strengthens the company’s position as a leading OEM.
Canara Bank Securities: Subscribe for long term
Brokerage house Canara Bank Securities has advised to subscribe to the IPO for a long period. The brokerage house says Quadrant Future Tech (QFTL) has brought diversification in specialized cable manufacturing and integrated backward segments while increasing cost efficiency and market adaptability. The brokerage said the cables used in the railways, defense and electric vehicle (EV) sectors exhibit superior durability and lightweight properties, contributing to EBIT margins of 16-24 per cent in the cable division. As QFTL expands operations, enhances integration and broadens its market reach, the company is well-positioned for continued growth.
Ventura Securities: Subscribe
Brokerage house Ventura Securities has advised to subscribe to the IPO. The brokerage house says the growing demand for automated railway safety systems under the ‘Make in India’ initiative and growing applications of e-beam cables in the renewable energy and EV sectors provide significant growth opportunities. With its innovative solutions, strong financial performance and focus on quality, Quadrant is well positioned for continued growth.
What does the company do?
Quadrant Future Tech Limited develops next generation train control and signaling systems for the Kavach project of Indian Railways, enhancing passenger safety and reliability. The company also has a special cable manufacturing facility with electron beam irradiation centre. The company has a facility at Village Basma (Tehsil Banur, District Mohali) for manufacturing, testing and development of special cables and hardware for Train Control and Signaling Division. The company is technology driven, with products meeting ISO, IRIS and TS standards and adhering to a strict quality management system for specialty cables.
(Disclaimer: The advice to invest in stocks has been given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
