Quadrant Future Tek Set to Launch ₹275 Crore IPO After SEBI Approval – Key Financials & Issue Details Inside
Quadrant Future Tek Limited, based in Mohali, has received approval from the Securities and Exchange Board of India (SEBI) to move forward with its ₹275 crore initial public offering (IPO). The company filed its IPO documents on June 2, 2024, and has now gotten the green light to raise funds.
Founded in 2015, Quadrant Future Tek is focused on creating advanced train control and signalling systems to ensure safety and reliability for rail passengers. The company also operates an electron beam irradiation centre and manufactures specialised cables, including irradiated and E-beam cables.
Quadrant supplies these speciality cables to sectors such as defence and railways. Its production facility in Mohali manufactures cables for solar and electric vehicles, while its Railway Signalling & Embedded System Design Centres are located in Bengaluru, Hyderabad, and Telangana.
The company generates most of its income from the defence and railway industries, with 74.05% of its revenue in December 2023 coming from Wires and Cables (Railways) and 25.08% from Wires and Cables (Defence).
IPO Details
The IPO will involve issuing new shares with a face value of ₹10 each, amounting to ₹275 crore.
The funds will be used as follows: ₹175 crore for working capital needs, ₹25 crore for developing the Electronic Interlocking System, ₹25 crore for repaying part of the company’s outstanding working capital term loan, and the rest for general corporate purposes.
Sundae Capital Advisors Private Ltd will manage the IPO, and Link Intime India Private Limited will act as the registrar.
Financial Overview
In the fiscal year 2023, Quadrant’s revenue from operations grew by 46.56% to ₹152.80 crore, up from ₹104.26 crore the previous year, driven by higher sales to the railway and defence sectors. Profit after tax rose from ₹1.94 crore in 2022 to ₹13.90 crore in 2023.
For the nine months ending December 30, 2023, the company reported ₹100.37 crore in revenue and ₹14.42 crore in profit after tax.
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