Quadrant Future-Tek is a technology-driven company known for its state-of-the-art electronics manufacturing and cable production facilities located in Mohali, Punjab, India. The company also operates two dedicated engineering centers in Bangalore and Hyderabad. Quadrant’s people policy encourages intrapreneurial spirit among its employees, fostering both passion and professionalism.

IPO Details

Quadrant Future-Tek is offering a book built issue amounting to ₹290 Crores, consisting entirely of a fresh issue of 100 Lakh shares. The subscription period for the IPO opens on January 07, 2025, and closes on January 09, 2025. The allotment is expected to be finalized on January 10, 2025, with a tentative listing date on January 14, 2025, on both BSE and NSE.

The price band for the IPO is set between ₹275 and ₹290 per equity share, with a market capitalization of ₹1,160 Crores at the upper price band. The lot size is 50 shares, with the minimum investment for retail investors being ₹14,500. High-net-worth individuals (HNIs) are required to invest a minimum of 14 lots, amounting to ₹2,03,000.

Subscription and Grey Market Premium

As of January 06, 2025, the Grey Market Premium (GMP) of Quadrant Future-Tek IPO stands at ₹110, reflecting a potential 37.93% premium over the issue price. This indicates positive investor sentiment and potential listing gains. However, investors should note that the GMP depends entirely on demand and supply in the unregulated market and is not always an accurate indicator of the stock's future performance.

Financial Performance and Key Metrics

For the period ended September 30, 2024, the company reported revenues of ₹651.35 million, an increase from ₹1,518.23 million in FY23. The EBITDA for the same period was ₹8.17 million, showing a steady growth trajectory over the past three years. However, the Profit after Tax (PAT) for FY24 was negative at ₹-120.05 million, indicating challenges in the company's profitability.

Key financial metrics for the company are as follows:

• Pre-issue EPS: ₹4.9
• Post-issue EPS: ₹3.67
• Pre-issue P/E ratio: 59.18x
• Post-issue P/E ratio: 78.95x, compared to the industry P/E ratio of 57x
• ROCE (Return on Capital Employed): 26.12% for FY24
• ROE (Return on Equity): 33.41% for FY24

Despite a negative annualized EPS of ₹-8.04 and PE ratio of -36.06x, the company’s strong ROE and ROCE suggest efficient capital utilization, though the high valuation metrics may present risks for investors.

Should You Apply for Quadrant Future-Tek IPO?

The Grey Market Premium of ₹110 indicates potential listing gains, reflecting positive sentiment in the market. However, the IPO is fully priced, with a high P/E ratio compared to industry peers. The negative PAT is a concern, but strong growth potential in the electronics manufacturing and cable production sector, coupled with positive ROE and ROCE figures, makes this IPO an attractive opportunity for investors seeking listing gains.

For those willing to take on some risk, especially with the potential for listing gains, it is advisable to apply for the IPO.

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

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

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