The Quadrant Future Tek IPO presents an exciting opportunity for investors interested in the burgeoning fields of technology, innovation, and electronics manufacturing. Quadrant Future Tek Limited, based in Mohali, Punjab, India, specializes in production electronics manufacturing and cable production and operates with state-of-the-art facilities. The company is well-positioned to capitalize on increasing demand in the electronics and rail sectors, thanks to its focus on innovation and technological advancement.

Quadrant Future Tek IPO Overview:

The Quadrant Future Tek IPO is a book-built issue amounting to ₹290 crores, consisting entirely of a fresh issue of 100 lakh shares. The subscription period for this IPO opened on January 7, 2025, and will close on January 9, 2025. The allotment date is expected to be January 10, 2025, and the shares will be listed on the BSE and NSE with a tentative listing date set for January 14, 2025.

The price band for the IPO is set at ₹275 to ₹290 per equity share. At the upper price band of ₹290, the market capitalization of Quadrant Future Tek will be ₹1,160 crore. The lot size of the IPO is 50 shares, meaning retail investors need to invest a minimum of ₹14,500. High-Net-Worth Individuals (HNIs) need to invest a minimum of 14 lots (700 shares), amounting to ₹2,03,000.

Sundae Capital Advisors Private Limited is the book-running lead manager for the IPO, while Integrated Link Intime India Private Limited is the registrar.

Quadrant Future Tek IPO Grey Market Premium (GMP):

The Grey Market Premium (GMP) for the Quadrant Future Tek IPO is expected to be ₹145, reflecting a potential listing gain of 50%. The GMP is an informal indicator of how the stock may perform on its listing day, although it is not a definitive guide, as it is based on unregulated trades. As of January 7, 2025, the GMP is ₹145, showing an increase from the previous day’s ₹110.

Quadrant Future Tek IPO Subscription Status:

As of January 9, 2025, 11:20 AM, the Quadrant Future Tek IPO has been subscribed 64.18 times on the final day of the subscription period. This reflects significant investor interest, particularly in the electronics and technology sectors.

Quadrant Future Tek IPO Allotment:

The IPO allotment for Quadrant Future Tek is expected to be finalized on January 10, 2025. Investors can check their allotment status through the registrar’s website by entering their application number, PAN, or DP Client ID.

Use of IPO Proceeds:

The proceeds from the Quadrant Future Tek IPO will be used for the following objectives:

1. ₹1,497.22 Million for funding the long-term working capital requirements of the company.
2. ₹243.75 Million for capital expenditure to develop the Electronic Interlocking System.
3. ₹236.19 Million for the repayment of the company’s working capital term loan.
4. The remaining amount will be used for general corporate purposes.

Quadrant Future Tek Financial Performance:

Quadrant Future Tek’s revenues for the period ending September 30, 2024, stood at ₹651.35 million, which is lower than the ₹1,518.23 million for FY 2023. Despite this, the company’s EBITDA improved significantly to ₹8.17 million from ₹367.05 million in the previous fiscal years. The Profit After Tax (PAT) for the period ending on September 30, 2024, was ₹-120.05 million, which indicates a decline compared to the ₹146.92 million in FY 2023.

In terms of financial ratios, the pre-issue EPS is ₹4.9, while the post-issue EPS is ₹3.67 for FY24. The P/E ratio stands at 59.18x pre-issue and 78.95x post-issue, higher than the industry P/E ratio of 57x. The ROCE (Return on Capital Employed) is 26.12%, and the ROE (Return on Equity) is 33.41%, suggesting strong potential for long-term growth.

Peer Comparison and Industry Outlook:

In comparison to its peers, Quadrant Future Tek is valued slightly higher in terms of P/E ratio, but its strong performance in the electronics manufacturing and rail sector justifies this premium. The company’s focus on rail sector technology and electronics solutions positions it well for long-term growth in India’s expanding infrastructure and rail markets.

The electronics manufacturing industry is expected to grow steadily as India focuses on increasing domestic manufacturing capabilities. As the company expands its engineering centers in Bangalore and Hyderabad, its footprint in the electronics space is poised for further growth.

Conclusion:

Based on the Grey Market Premium (GMP) of ₹145, signaling a potential listing gain of 50%, and considering the financial metrics and growth potential, we recommend investors to apply for the Quadrant Future Tek IPO, especially for those seeking listing gains. The company's strong focus on technology and innovation, along with its experienced management, makes it a potentially attractive investment in India’s rapidly growing electronics and rail sectors.

The Upcoming IPOs in this week and coming weeks are Sat Kartar Shopping,Barflex Polyfilms and Laxmi Dental.

The Current active IPO are Standard Glass Lining, Quadrant Future, Capital Infra Trust, Delta Autocorp, Avax Apparels, B R Goyal.