Should You Consider Investing in Denta Water IPO?
Quadrant Future Tek Lists at 29% Premium, Shows Strong Performance on BSE & NSE
Last Updated: 14th January 2025 - 12:23 pm
Quadrant Future Tek Limited, a developer of next-generation train control and signaling systems operating since September 2015, marked its entry into the public markets on Tuesday, January 14, 2025. The company, which specializes in developing train control and signaling systems for the Indian Railways' KAVACH project and operates a specialty cable manufacturing facility in Village Basma, Tehsil Banur, commenced trading on both BSE and NSE amid robust investor enthusiasm.
i Don’t Miss Out on the Next Big IPO – Invest With Just a Few Clicks!
Quadrant Future Tek Listing Details
The company's market debut reflected strong investor confidence in its business model and growth prospects:
- Listing Time & Price: When trading commenced at market open, Quadrant Future Tek shares debuted at ₹374 on BSE and ₹370 on NSE, delivering impressive premiums of 28.9% and 27.5% respectively to IPO investors. This strong opening validates the market's recognition of the company's technological capabilities and growth plans.
- Issue Price Context: The considerable premium emerged after the company had strategically priced its IPO between ₹275 and ₹290 per share, ultimately fixing the final issue price at ₹290. This pricing approach successfully balanced institutional investor accessibility with fair value for the company's growth potential.
- Price Evolution: By 10:55 AM IST, investor enthusiasm continued to build, pushing the stock to ₹428, representing an outstanding gain of 47.59% over the issue price, after touching an intraday high of ₹428.80, demonstrating sustained buying interest throughout the early trading session.
Quadrant Future Tek First-Day Trading Performance
The trading activity showed robust participation and strong investor conviction:
- Volume and Value: Within the first few hours, 10.09 lakh shares changed hands, generating a substantial turnover of ₹39.08 crore. Notably, 57.60% of traded shares were marked for delivery, indicating a healthy mix of investment and trading interest.
- Demand Dynamics: The stock's trading pattern showed continued strength with buy orders for 28.14 lakh shares against sell orders for 32,880 shares, reflecting strong buying interest at higher levels.
Quadrant Future Tek Market Sentiment and Analysis
- Market Reaction: Strong opening followed by further upward momentum
- Subscription Rate: The Quadrant Future Tek IPO was massively oversubscribed by 195.96 times
- Pre-listing Interest: Anchor investors demonstrated strong confidence by investing ₹130.50 crore before the public issue
Quadrant Future Tek Growth Drivers and Challenges
Expected drivers of future performance:
- Innovation in Automatic Train Protection Systems
- Exclusive MoU with RailTel for KAVACH opportunities
- In-house design and product development capabilities
- Advanced cable manufacturing technology
- Focus on innovation and cost competitiveness
- Strong R&D capabilities
Potential challenges:
- Static top lines in recent years
- Loss in H1-FY25
- High debt-to-equity ratio
- Exorbitant pricing concerns
- High risk/low return concern
Utilisation of IPO Proceeds
The ₹290 crore raised through fresh issue will be used for:
- Funding long-term working capital requirements
- Capital expenditure for electronic interlocking system
- Prepayment of working capital term loans
- General corporate purposes
Quadrant Future Tek Financial Performance
The company has shown mixed results:
- Revenue decreased marginally to ₹151.82 crore in FY2024 from ₹152.95 crore in FY2023
- H1 FY2025 (ended September 2024) showed revenue of ₹65.14 crore with PAT of -₹12.11 crore
- Net worth of ₹34.18 crore as of September 2024
- Total borrowings of ₹98.01 crore
As Quadrant Future Tek begins its journey as a listed entity, market participants will closely monitor its ability to execute expansion plans and improve operational metrics. The strong listing and sustained momentum suggest robust investor confidence in the company's prospects in the railway signaling sector, particularly given its technological capabilities and strategic partnerships, despite concerns about recent financial performance and aggressive valuations.
- Flat ₹20 Brokerage
- Next-gen Trading
- Advance Charting
- Actionable Ideas
Trending on 5paisa
01
5paisa Research Team
IPOs Related Articles
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.