Quadrant Future Tek’s Rs 290-crore IPO sees 16x subscription on Day 1; retail portion booked 55x

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The Rs 290-crore Quadrant Future Tek IPO saw a massive 15.84 times subscription on Day 1 (January 7). The IPO received bids for nearly 9.18 crore equity shares, as against the offer size of 58 lakh shares, the subscription data on NSE showed.

The subscription was led by retail investors, whose portion was subscribed 54.72 times. The portion reserved for Non Institutional Investors (NIIs) was subscribed 21.49 times. The IPO, however, received muted response from Qualified Institutional Buyers (QIBs), whose reserved portion has been subscribed 5% so far.

Quadrant Future Tek has fixed a price band of Rs 275-290 per share for the IPO, which entirely comprises a fresh issue of 1 crore equity shares. Investors can bid for a minimum of 50 shares, requiring an investment of Rs 14,500, and in multiples thereafter. The IPO will remain open for subscription from January 7 to January 9. The shares are expected to debut on stock exchanges on January 14.

Ahead of the listing, the unlisted shares of the company were trading with a grey market premium (GMP) of around 69% at Rs 490 per share, as per data on Investorgain on January 7.

Ahead of the IPO, Quadrant Future Tek raised Rs 130.5 crore from 15 institutional investors via anchor book on January 6. Bengal Finance and Investment, and Shine Star Build Cap were the largest institutional investors in the anchor book.

Quadrant Future Tek builds new generation train control and signalling systems under KAVACH project of the Indian Railways. The company was founded 2015 and is headquartered in Mohali, Punjab.

Geojit Financial Services has come up with a 'Subscribe' rating for the IPO. “Despite concerns over negative PAT and limited experience in Train Control Systems, we recommend subscribe on a short term basis for high risk investors,” Geojit said.