Mohali based Quadrant Future Tek Limited has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 275 crore through an initial public offering (IPO).
The Company had filed its IPO papers with Sebi on June 2, 2024.
The IPO, with a face value of Rs 10 per equity share, is entirely a fresh issue of shares of up to Rs 275 crore.
Proceeds from the fresh issue to the extent of Rs 175 crore for funding long-term working capital requirements of the Company; Rs 25 crore for capital expenditure for development for Electronic Interlocking System; Rs 25 crore for prepayment or repayment of all or a portion of outstanding working capital term loan availed by the Company; and general corporate purpose.
Incorporated in 2015, Quadrant Future Tek is a research-oriented company engaged in developing new-generation Train Control and Signalling Systems that offer the highest level of safety and reliability to rail passengers and also possess an irradiated/E-beam cable manufacturing facility with an Electron Beam Irradiation Centre.
The company offers speciality cables for Railway rolling stock and the naval (Defence) industry. Its manufacturing facility also possesses end-to-end infrastructure capabilities for producing Solar and EV Cables. The company’s manufacturing operations are based in Basma, Mohali, and the Railway Signalling & Embedded System Design Centre is in Bengaluru, Karnataka, Hyderabad, and Telangana.
The company’s primary customers are in the railways and defence business segment. As of December 31, 2023, the company derived 74.05% of its revenue from Wires and Cables (Railways) and 25.08% from Wires and Cables (Defence).
In the month of May, Quadrant Future Tek has entered into a Memorandum of Understanding (MoU) with RailTel Corporation of India Limited (“RailTel”), a Government of India undertaking, to define a framework of inter-se co-operation to establish high level understanding of intended opportunities, KAVACH as a means of Automatic Train Protection System for Railways in India and abroad, and to realign and broaden the scope as per the opportunities within other countries and their Railway System.
Quadrant’s revenue from operations increased by 46.56% to ₹ 152.80 crore in the Fiscal 2023 from ₹ 104.26 crore during the Fiscal 2022, primarily due to increase in sale of wires and cables to railway industry, wires and cables to defence industry. Profit after tax grew from Rs 1.94 crore for the financial year 2022 to Rs 13.90 crore for the financial year 2023.
For the nine months ended December 30, 2023, revenue from operations stood at Rs 100.37 crore and profit after tax stood at Rs 14.42 crore.
Sundae Capital Advisors Private Limited is the sole book-running lead manager, and Link Intime India Private Limited is the registrar of the issue.
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