Quadrant Future Tek shares extended listing gains to hit the upper circuit on its stock exchange debut on Tuesday, closing 53 percent above the IPO price and surpassing investors listing expectations. Quadrant Future stock opened at Rs 370 vs the IPO allotment price of Rs 290, but soon surged to Rs 444 to the upper circuit. The firm's IPO had received overwhelming demand, getting subscribed 186 times.
Quadrant Future Tek IPO highlights
The Rs 290-crore IPO of Quadrant Future Tek, entirely a fresh issue of 1 crore equity shares, was open for subscription during January 7-9. The public issue, priced in the range of Rs 275-290 per share, garnered massive investor interest, achieving 186 times subscription overall. Non-institutional investors led the charge with 254 times subscription, followed by retail investors and qualified institutional buyers (QIBs) at 243 times and 133 times, respectively.
Ahead of the public offering, Quadrant Future Tek raised Rs 130.5 crore through its anchor book on January 6, with Bengal Finance and Investment, and Shine Star Build Cap among the largest institutional investors.
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Grey market signals and analyst expectations
The IPO has seen significant activity in the grey market, indicating a potential listing premium of over 40 percent. Prashanth Tapse, Senior Vice President of Research at Mehta Equities, attributed the demand to the company’s unique market positioning and future growth prospects.
The public issue values Quadrant Future Tek at a P/E ratio of 43.01x and an enterprise value-to-EBITDA ratio of 30.08x, with a market capitalization of Rs 2,792.8 crore. Analysts suggest conservative investors book profits on strong listing gains, while long-term investors should hold the shares to benefit from the company’s growth potential. For those who missed the allotment, dips post-listing may provide a buying opportunity.
Company overview
Quadrant Future Tek is a niche player in advanced railway signalling systems and specialty cables, with significant contributions to the Indian Railways’ KAVACH project. The company’s diversified portfolio spans sectors such as railway, defence, solar energy, and electric vehicles (EVs), aligning with emerging industries and sustainability trends.
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