Quadrant Future Tek IPO
Business Overview
Incorporated in September 2015, Quadrant Future Tek Limited designs and develops cutting-edge Train Control and Signaling Systems for the Indian Railways' KAVACH project, prioritizing passenger safety and reliability.
Manufacturing Facility
The company operates a state-of-the-art speciality cable manufacturing facility, equipped with an Electron Beam irradiation Centre, at Village Basma, Tehsil Banur, Distt Mohali. This facility manufactures, tests, and develops speciality cables and hardware for the Train Control & Signalling Division.
Technology and Quality
Quadrant Future Tek Limited is a technology-driven company, with products meeting stringent ISO, IRIS, and TS standards. The company adheres to rigorous Quality Management Systems for speciality cables.
Objectives of the Issue
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:
Funding long-term working capital requirements of the Company;
Capital expenditure for the development of Electronic Interlocking System;
Prepayment or repayment of all or a portion of outstanding working capital term loan availed by the Company; and
General corporate purposes.
Strengths
Innovative Train Control System: Quadrant Future Tek offers a state-of-the-art train control system, enhancing safety and operational efficiency in rail transport.
Strategic Collaboration: The company has signed an MoU with RailTel, ensuring consistent long-term working capital funding.
Expertise in Railway Signalling: Boasts strong in-house capabilities in designing and developing advanced railway signalling products.
Risks
Promoter Disputes: Internal disputes among promoters may adversely affect governance and operational stability.
Facility Dependency: Heavy reliance on the Mohali facility creates potential operational vulnerabilities.
Revenue Dependency: The company’s earnings are closely tied to Indian Railways’ policies and tender outcomes.
High Working Capital Requirements: Inadequate funding could severely disrupt operations due to significant working capital needs.
Lack of Long-term Contracts: Operates primarily through purchase orders and tenders, lacking stability from long-term agreements.
Quadrant Future Tek IPO: Key Details
IPO Dates: 7 to 9 January, 2025
Price Band : ₹275 to ₹290 per share
Lot Size: 50 shares
Total Issue size: ₹290 Crores
Retail Quota: 10%
GMP: 55% (For Informational purposes only)
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