Quadrant Future Tek Lists at 29% Premium, Shows Strong Performance on BSE & NSE

resr 5paisa Research Team

Last Updated: 14th January 2025 - 12:23 pm

Listen icon

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.

 

 

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.
 

FREE Trading & Demat Account
Open FREE Demat Account with endless opportunities.
  • Flat ₹20 Brokerage
  • Next-gen Trading
  • Advance Charting
  • Actionable Ideas
+91
''
By proceeding, you agree to our T&Cs*
Mobile No. belongs to
hero_form

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.

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.

+91

By proceeding, you agree to all T&C*

footer_form