Quadrant Future Tek shares list at 29% premium over IPO price

Shares of Quadrant Future Tek, which raised ₹290 crore through its initial public offering (IPO) last week, made a solid debut on the stock market today. The company's shares, which specialises in the research and development of advanced train control and signalling systems for Indian Railways, listed at ₹370 on the NSE, up 27.6% from the issue price of ₹290. On the BSE, the stock opened at ₹374, marking a 29% increase over the IPO price.

Post-listing, Quadrant Future Tek shares rose as much as 34.5%, reaching a high of ₹390 on the BSE, while the market capitalization climbed to ₹1,530 crore.

The listing of Quadrant Future Tek shares was slightly lower than street expectations, as the stock had commanded a grey market premium (GMP) of 41.4% in the unlisted market. Ahead of the listing, the stock was trading at ₹410 per share in the grey market.

“A notable 27.59% premium over its issue price of ₹290, the company's listing price of ₹370 per share marked a successful stock market debut. The IPO participants may book a portion of their profit and hold with a stop loss of ₹330,” says Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.

She adds that the company has strong historical growth, but recent half-year results have been negative.

The IPO of Quadrant Future Tek, which opened for bidding between January 7-9 at a price band of ₹275-290 per share, garnered an overwhelming response from investors, with the issue subscribing 195.96 times. The public issue was subscribed 256.46 times in the retail category, while the quota reserved for qualified institutional investors (QIB) and non-institutional investors (NII) was subscribed 139.77 times and 268.03 times, respectively.

Established in September 2015, Quadrant Future Tek develops next-generation train control and signalling systems for the Indian Railways' KAVACH project. The company also operates a specialty cable manufacturing facility with an Electron Beam Irradiation Centre.

The specialty cables manufactured by the company are used in the Railways rolling stock and the Naval (Defence) industry. Additionally, the company provides end-to-end infrastructure capabilities for the production of Solar and EV cables. It has a facility for manufacturing, testing, researching, and developing specialty cables, as well as for producing hardware required for the train control and signalling division, both located in Mohali, Punjab.

The company has a dedicated railway signalling and embedded systems design centre for developing train control products and solutions. It is also working towards the development of a train collision avoidance system and an electronic interlocking system under KAVACH, which serves as an automatic train protection system to enable safety and capacity augmentation in Indian Railways.

As of September 30, 2024, the company’s Specialty Cable division had an installed capacity of 1,887.60 metric tonnes.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)