Quadrant Future Tek Ltd, a leading company in the railway signaling and train control systems industry, plans to launch an initial public offering (IPO). Focused on modernizing rail infrastructure, this IPO offers investors the opportunity to be part of a rapidly growing sector. In this detailed review, Quadrant Future Tech IPOIncludes , company details, IPO details, financials, competitor comparisons, reasons for investing, risks, how to apply, and final review.
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About Quadrant Future Tek Ltd.
Established over a decade ago, Quadrant Future Tek Ltd has emerged as a pioneer in providing advanced signaling systems to railway networks. The company’s innovative solutions, such as electronic interlock systems and centralized traffic control, have revolutionized rail safety and efficiency.
Although Quadrant Future Tek mainly handles domestic railway projects, it has recently expanded into international markets, showing off its technological prowess. With the government’s push to modernize its railways, the company is well-positioned to benefit from increased infrastructure investment.
Quadrant Future Tech IPO Details
Key details of the IPO include:
- IPO start date: January 7, 2025
- IPO deadline:January 9, 2025
- Issue size: ₹29 billion (latest issue)
- face value: ₹10 per share
- price range: ₹275 to ₹290 per share
- market lot:50 shares
- Exhibition location: NSE and BSE
- Assignment date: The allocation record date is scheduled for January 10, 2025.
- Listing date: The shares are expected to be listed on NSE and BSE on January 14, 2025
Competitiveness:
- [Business description]The company is engaged in the innovation and technology development of automatic train safety systems.
- Signed an exclusive Memorandum of Understanding with RailTel to pursue KAVACH opportunities in Indian Railways and other countries’ railways.
- In-house design and product development capabilities that enhance our rail signaling products and solutions.
- Advanced cable manufacturing technology that meets stringent standards in the railway, naval defense, renewable energy and electric vehicle sectors.
- Advanced manufacturing facility with a wide variety of power and control cables, with a focus on innovation and cost competitiveness.
Utilization of funds/purpose of IPO
- Financing the company’s long-term working capital requirements.
- Capital investment for electronic interlocking system development.
- Prepayment or repayment of all or part of any outstanding working capital term loan utilized by the Company. and
- General corporate purposes.
financial performance
Quadrant Future Tek has demonstrated steady growth in revenue and profitability over the past few years. Below is a snapshot of the company’s financials.
| Period ends | Assets (₹Cr) | Revenue (₹Cr) | Profit after tax (₹Cr) | Net worth (₹Cr) | Reserves and Surplus (₹Cr) | Total amount borrowed (₹Cr) |
| September 30, 24 | 149.66 | 65.14 | -12.11 | 34.18 | 4.18 | 98.01 |
| March 31, 24 | 142.82 | 151.82 | 14.71 | 44.11 | 34.11 | 81.61 |
| March 31, 23 | 118.82 | 152.95 | 13.90 | 29.42 | 19.42 | 74.00 |
| March 31, 22 | 112.77 | 104.29 | 1.94 | 15.61 | 5.61 | 80.68 |
The company’s financial situation is mixed. Although the company achieved large surpluses in FY2013 and FY2014, there are concerns about a negative PAT in the first half of FY2014. When you read Quadrant Future Tech IPO RHP Page 42 of the prospectus states: “The loss for the six months ended September 30, 2024 was due to the expense of the Train Control and Signaling division being recorded in the income statement since the capitalization of intangible assets. I was able to confirm the comment “Yes.” Assets created by us for the development of the Kavach system.”
Key performance indicators
Quadrant Future Tek IPO has a market capitalization of 1160.00 Cr. The KPIs for the period ending March 31, 2024 are:
| KPI | values |
| egg | 33.41% |
| Rose | 26.12% |
| debt/equity | 1.86 |
| RoNW | 33.41% |
| PAT margin | 9.68 |
| price vs. book value | 19.73 |
Comparison of PER with peers
Based on the upper price band of ₹290, Quadrant Future Tek’s post-issuance P/E ratio is: 59.1 timescalculated based on FY2024 EPS ₹4.9. Below is a comparison of P/E ratios of other companies in the same industry.
- polycab india:64.85 times
- KAI Industries:48.34 times
- Havells India:69.42 times
Quadrant Future Tek’s stock price is 59x, which is a good value compared to its peers.
Note that the P/E ratio cannot be ascertained as the company suffered a loss in the first half of FY25.
Why invest in Quadrant Future Tek IPO?
- Strong industry tailwind: Demand for advanced signaling systems is expected to increase rapidly as governments prioritize railway modernization.
- technical leadership: Quadrant Future Tek’s focus on research and development allows us to stay ahead of our competitors in innovation.
- Improving profitability: The company’s financials show consistent revenue growth and improving margins, making it a fundamentally strong candidate.
- Diverse product portfolio: Its products address different aspects of railway signaling, reducing dependence on a single product line.
risk factors
Quadrant Future Tek shows a promising future, but there are risks to consider.
- Client concentration: The company derives most of its revenue from a small number of customers, creating concentration risk.
- Regulatory hurdles: We operate in a highly regulated environment and changes to our policies may impact our operations.
- technology obsolescence: Rapid advances in technology require continuous innovation, which can put a strain on resources.
- debt level: A portion of the IPO proceeds will be used to pay down debt, but the company’s current debt is relatively high.
How can I apply for Quadrant Future Tek IPO?
You can apply for this IPO using the following methods.
- ASBA (Applications Supported by Blocked Amounts): To apply under ASBA facility, please use the bank’s net banking platform.
- UPI based applications: Apply through broker platforms like Zerodha, Groww, Upstox, etc. using UPI for payments.
- offline application: Obtain and submit a physical application through a registered broker or syndicate member.
Is there a GMP available for Quadrant Future Tek IPO?
At the time of writing, no gray market premium pricing was found available for this IPO.
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Should you invest in Quadrant Future Tech’s IPO?
The Quadrant Future Tek IPO offers a unique opportunity to invest in companies operating in niche yet rapidly growing sectors. IPOs are fully priced.
However, the negative PAT for the first half of FY2015 has raised concerns about whether the company will be able to maintain stable profitability. Investors should carefully evaluate this risk.
If you have a high risk tolerance, this IPO looks like a good addition to your portfolio for long-term gains.
