Quadrant Future Tek IPO shares to list today, investors eye bumper listing gains; should you buy, sell or hold?

Quadrant Future Tek IPO shares to list today, investors eye bumper listing gains; should you buy, sell or hold?

Quadrant Future Tek shares are set to list on the BSE and the National Stock Exchange (NSE) today at 10 am, with investors eagerly anticipating robust listing gains amid significant interest in the grey market.

The IPO of Quadrant Future Tek received an overwhelming response, achieving 185.82 times subscription on the final day of the offer, underscoring the strong appetite among retail, high-net-worth individuals (HNIs), and institutional investors. The issue had been fully subscribed within minutes of opening on January 7, despite ongoing market volatility.

Quadrant Future Tek is a niche player in the advanced railway signalling systems and specialty cables sector. The company’s role as a key contributor to the Indian Railways’ KAVACH initiative has made it a sought-after investment. The firm’s diversified portfolio spans sectors such as railway, defence, solar energy, and electric vehicles (EVs), showcasing its alignment with emerging industries and sustainability trends.

Prashanth Tapse, Senior Vice President of Research at Mehta Equities Ltd, attributed the high demand to the company's unique market positioning and future growth prospects. "Given the market sentiment and the listing of comparable players, we expect a healthy listing gain of over 40 percent from the issue price," he said.

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Should You Buy, Sell or Hold?

Tapse advised conservative investors to book profits if the stock lists significantly above expectations. "Long-term investors, however, should consider holding the shares, as the company has strong fundamentals and is positioned to benefit from long-term industry trends. For those who missed the allotment, any dips post-listing could offer an opportunity to accumulate."

The IPO, priced between Rs 275 and Rs 290 per share, raised over Rs 130 crore from anchor investors ahead of the public offer. Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares, noted the issue values the company at a price-to-earnings (P/E) ratio of 43.01x and an enterprise value-to-EBITDA ratio of 30.08x. Post-listing, the company’s market capitalization is estimated at Rs 2,792.8 crore, with a return on net worth (RoNW) of 20.74 percent.

186x subscription in 3 days! Quadrant Future Tek’s Rs 290-crore IPO closes, NII portion booked 254x

Quadrant Future Tek’s in-house capabilities across its entire value chain and diversified product portfolio position it well for long-term growth. "Given the financial metrics, investors should consider holding the stock as a long-term investment, provided they can navigate near-term market volatility," he added.

Abhishek Pandya, Research Analyst at StoxBox added we recommend that investors who have been allotted shares consider holding their positions from a medium to long-term perspective.

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