The Initial Public Offering's price band set at Rs275 to Rs290 per Equity Share
FinTech BizNews Service
Mumbai, January 3, 2025: Quadrant Future Tek Limited, has fixed the price band of Rs275/- to Rs290/- per Equity Share of face value Rs10/- each for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Tuesday, January 07, 2025, for subscription and close on Thursday, January 09, 2025. Investors can bid for a minimum of 50 Equity Shares and in multiples of 50 Equity Shares thereafter. The IPO is entirely a fresh issue of up to Rs 290 crore with no offer of sale component.
The proceeds from its fresh issuance to the extent of Rs 149.72 crore will be utilized for funding longterm working capital requirements of the Company (Specialty Cable Division); Rs 24.37 crore for capital expenditure for development for Electronic Interlocking System; Rs 23.62 crore for prepayment or repayment of all or a portion of outstanding working capital term loan availed by the Company; and general corporate purpose. Quadrant is a research-oriented company, engaged in developing new generation Train Control and Signalling Systems for Indian Railways that offers the highest level of safety and reliability to rail passengers and also possess a Specialty cable manufacturing facility with Electron Beam Irradiation Centre. The specialty cables manufactured by the Company is used in Railways rolling stock and Naval (Defence) industry. The facility also possess end to end infrastructure capabilities for production of Solar & EV Cables.
The Company has one facility for manufacturing, testing, researching, and developing specialty cables and also to manufacture the hardware required for Train Control & Signalling Division, both situated at Village Basma, Tehsil Banur, Distt Mohali, Punjab. The competitive advantage is the technology and innovation-driven approach, its efficiency in operations, maintaining quality control, experienced domain professionals and design and development team for embedded systems enabling indigenously developed solutions. For the Speciality Cable division, the Company had an installed capacity of 1,887.60 metric tonnes as on September 30, 2024. The Company has dedicated Railway Signalling & Embedded System Design centre for the development of Train Control Products & Solutions and is working towards development of Train Collision Avoidance System and Electronic Interlocking System under KAVACH as a means of Automatic Train Protection System to enable safety and capacity augmentation in Indian Railways.
Under Kavach implementation, the Company has received purchase order on December 12, 2024 from Chittranjan Locomotive Works for the supply, installation, testing, and commissioning of On-board Kavach equipment in 1,200 locomotives for an aggregate value of Rs9,786.06 million (including taxes). Also, on May 01, 2024, the Company has entered into a Memorandum of Understanding with RailTel Corporation of India Limited, a Government of India undertaking, to define a framework of inter-se co-operation to pursue Kavach opportunities for Railways in India and abroad.
Sundae Capital Advisors Private Limited is the sole book-running lead manager, and Link Intime India Private Limited is the registrar of the issue. The Issue is being made through the book-building process, wherein not less than 75% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the offer shall be available for allocation to non-institutional investors, and not more than 10% of the offer shall be available for allocation to retail individual bidders.
Notes for Reference:
Issue Size of the IPO based on the upper and lower end of the price band Fresh Issue Lower Band (@ Rs 275) Rs 290 crore Upper Band (@ Rs 290) Rs 290 crore
