| Company | Value | Change | %Change |
|---|
The highest demand was witnessed from retail investors, who subscribed to the issue by a whopping 191.44 times, followed by the non-institutional investors (NIIs) at 166.71 times.
Meanwhile, the qualified institutional buyers’ (QIBs) portion have been subscribed 12.97 times.
The issue has been subscribed 87 times so far on the third and final day of bidding, according to data available from the NSE as of 1 pm.
Shares of Quadrant Future Tek are commanding a premium of ₹210 in the grey market today, which indicates a premium of 73% over the issue price.
However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
The price band for the offer has been fixed at ₹275 – ₹290 per equity share. The IPO will fetch ₹290 crore at the upper end of the price band.
The IPO is completely a fresh equity issue of 1 crore shares.
Funds from the IPO will be used to support long-term working capital needs for the specialty cable division, capital expenditure for developing an electronic interlocking system, repayment of working capital term loans, and general corporate purposes.
The Punjab-based company has already garnered ₹130.5 crore from 15 institutional investors on January 6.
Foreign and Domestic Institutions who participated in the anchor included Citigroup Global Markets Mauritius Private Ltd, Capri Global Capital Ltd, Shubhkam Ventures, Whiteaok MF, Whiteaok, LIC MF, Kotak MF, Bank of India MF, Bengal Finance and Investment Private Ltd, PGIM India, Sundram Alternative and besides other.
Quadrant Future Tek is a research-oriented organisation engaged in developing next-generation Train Control and Signalling Systems under the KAVACH project of the Indian Railways. These systems offer the highest level of safety and reliability to rail passengers. The company operates a speciality cable manufacturing facility equipped with an Electron Beam Irradiation Centre.
The speciality cables manufactured by the company are used in railway rolling stock and the naval (defence) industry. Additionally, the facility boasts end-to-end infrastructure capabilities for the production of Solar and EV cables.
The company’s revenue, EBITDA, and profit achieved a CAGR of 20.6%, 96.5%, 175.2% to ₹152 crore, ₹37 crore, ₹15 crore, during FY22-FY24 period. Among peers, the company leads with an EBITDA margin of 24.1% in FY24 and its return ratios are equally competitive.
Sundae Capital Advisors is the book running lead manager of the Quadrant Future Tek IPO, while Link Intime India Private Ltd is the registrar.
The allotment for the IPO is expected to be finalised on January 10, while the stock will list on BSE, NSE with tentative listing date fixed as January 14.
