The Rs 290-crore Quadrant Future Tek IPO saw a massive 48.95 times subscription on Day 2 (January 8). The IPO received bids for nearly 28.39 crore equity shares, as against the offer size of 58 lakh shares, the subscription data on NSE showed.
Retail investors led the subscription rally, with the portion reserved for them seeing a whopping 137 times subscription. The portion for non-institutional investors (NIIs) was subscribed 87.18 times. The IPO has seen a comparatively muted response from Qualified Institutional Buyers (QIBs), whose reserved portion was booked only 46%.
Quadrant Future Tek has set a price band of Rs 275-290 per share for the IPO, which entirely comprises a fresh issue of 1 crore equity shares with no offer-for-sale (OFS) component. Retail 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 bids from January 7 to January 9. The allotments are set to be announced on January 10. The shares of the company are expected to be listed on BSE and NSE on January 14.
Grey Market Premium (GMP)
Ahead of the listing, Quadrant Future Tek’s unlisted shares were trading with a grey market premium (GMP) of around 72% at Rs 500 per share, as per data on Investorgain on January 8.
Prior to 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.
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