Quadrant Future Tek IPO Fund Utilisation: CARE Ratings Flags Procedural Deviations and Pending KAVACH Approval in Q4FY26 Monitoring Report

Quadrant Future Tek Limited has received its Monitoring Agency Report for the quarter ended March 31, 2026, issued by CARE Ratings Limited pursuant to Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Regulation 41(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report covers the utilisation of funds raised through the company's Initial Public Offer (IPO), which aggregated to Rs. 290.00 crore, and was filed with the stock exchanges on May 12, 2026.

IPO Issue Overview

The IPO was open for subscription from January 07, 2025, to January 09, 2025, with allotment on January 10, 2025. The issue comprised equity shares and was not assigned any IPO grading. The company operates in the Electrical Equipment – Other Electrical Equipment sector, with Mr. Mohit Vohra as the promoter. The Monitoring Agency Agreement with CARE Ratings Limited was dated November 28, 2024.

Fund Utilisation Progress as of March 31, 2026

As of the end of Q4FY26, the company had cumulatively utilised Rs. 267.12 crore out of the total revised issue proceeds of Rs. 290.00 crore, leaving an unutilised balance of Rs. 22.88 crore. The following table summarises the object-wise utilisation status:

Object: Original Cost (Rs. Crore) Revised Cost (Rs. Crore) Utilised at Quarter Start (Rs. Crore) Utilised During Quarter (Rs. Crore) Utilised at Quarter End (Rs. Crore) Unutilised (Rs. Crore) Issue Related Expenses: 29.22 27.23 18.67 8.56 27.23 0.00 Long-term Working Capital (Speciality Cable Division): 149.72 149.72 141.48 8.09 149.57 0.15 Capital Expenditure – Electronic Interlocking System: 24.38 24.38 1.65 0.00 1.65 22.73 Repayment/Prepayment of Working Capital Term Loan: 23.62 23.61 23.61 0.00 23.61 0.00 General Corporate Purposes: 63.06 65.06 62.72 2.34 65.06 0.00 Total: 290.00 290.00 248.13 18.99 267.12 22.88

During Q4FY26, Rs. 8.09 crore was utilised for working capital requirements of the Speciality Cable Division, including raw material procurement. Payments to copper vendors were made on a Proforma Invoice basis linked to London Metal Exchange (LME) fluctuations, resulting in a difference of Rs. 0.22 crore between invoice amounts and bank statement debits in Q4FY26, with the monitoring agency relying on management representation and the Chartered Accountant certificate for reconciliation.

Key Deviations and Procedural Observations

CARE Ratings identified several procedural deviations and observations in its report, as detailed below:

General Corporate Purpose (GCP) approval delay: Board approval for GCP utilisation pertaining to Q4FY26 was not obtained during the quarter and was subsequently ratified through a board resolution dated April 08, 2026.

Fund reallocation: The board, through a resolution dated February 25, 2026, reallocated a surplus of Rs. 1.99 crore from Issue Related Expenses and Rs. 0.01 crore from the working capital term loan repayment object towards General Corporate Purposes. Prior shareholders' approval was not obtained for this reallocation.

IPO expense reimbursement: Through a board resolution dated January 10, 2026, and a special resolution passed via postal ballot on February 13, 2026, the company approved withdrawal of Rs. 8.57 crore from the IPO Monitoring Account towards reimbursement of IPO-related expenses incurred from the company's own funds.

Electronic Interlocking System (EIS) object: Nil amount was utilised under this object during Q4FY26. The unutilised balance stands at Rs. 22.73 crore as of March 31, 2026. The permitted timeline for this object was March 31, 2026; however, timeline extension approval has not been obtained by management.

Deviation range: The overall range of deviation was reported as up to 10%.

The board clarified that unutilised amounts under objects not fully deployed in a scheduled fiscal year may be utilised in the next fiscal year as per the Prospectus, and that this does not necessitate a separate board or shareholders' approval under applicable regulations.

KAVACH Project: Pending Approval and Financial Impact

The monitoring report flags the pending final approval for the KAVACH project from the Research Designs & Standards Organization (RDSO) as a major observation carried over from earlier monitoring reports. The company has received approvals from Indian Railways for field trials and a dedicated track has been assigned; however, final RDSO approval remains outstanding. Continued investments in R&D, employee expenses, equipment, and material costs associated with the KAVACH project have contributed to ongoing losses.

The board stated that the KAVACH project is a safety-critical evaluation framework subject to comprehensive and rigorous assessment by the Railway Board, and that the process necessarily involves detailed scrutiny requiring extensive time, consistent with normal Railway practice. The board also noted that the KAVACH approval is a commercial approval rather than a statutory one, and that the ISA approval process is actively ongoing.

Financial Performance and Other Observations

The monitoring agency noted that the company reported a net loss of Rs. 19.68 crore during FY25 and Rs. 44.08 crore during 9MFY26. Frequent changes in key managerial personnel (KMP) were also observed during FY26. The board clarified that losses are primarily attributable to ongoing investments in the KAVACH project under the Train Control Division, while the Speciality Cable Division remains profitable. The board also confirmed there were no KMP changes during Q4FY26 and that a structured succession planning program is in place.

Deployment of Unutilised Proceeds

The total unutilised proceeds of Rs. 22.88 crore as of March 31, 2026, are deployed as follows:

Instrument / Account: Amount Invested (Rs. Crore) Maturity Date Return on Investment (%) ICICI Bank Public Issue Account (No. 001305014782): 0.00 – – ICICI Monitoring Agency Account (No. 001305014788): 0.00 – – HDFC Bank Monitoring Agency Account (No. 57500001674002): 0.15 – – Fixed Deposit – ICICI Bank (FD No. 001313112145): 4.50 23-01-2027 6.25 Fixed Deposit – ICICI Bank (FD No. 001313112147): 4.73 27-07-2026 5.50 Fixed Deposit – ICICI Bank (FD No. 001313112143): 4.50 23-01-2027 6.25 Fixed Deposit – ICICI Bank (FD No. 001313112146): 4.50 27-07-2026 5.50 Fixed Deposit – ICICI Bank (FD No. 001313112144): 4.50 23-01-2027 6.25 Total Unutilised Proceeds: 22.88

The above table excludes interest income of Rs. 2.59 crore earned in Q4FY26 on Fixed Deposit Receipts (FDRs) created from IPO proceeds. The Chartered Accountant certificate for the report was issued by Sanmarks & Associates, Statutory Auditors of Quadrant Future Tek Limited, dated April 24, 2026. Management expects to fully consume the remaining working capital balance under the Speciality Cable Division object in Q1FY27, while the EIS object balance is expected to be consumed in the ensuing period.

Quadrant Televentures Limited, currently undergoing Corporate Insolvency Resolution Process (CIRP) pursuant to an order of the National Company Law Tribunal (NCLT) dated September 2, 2025, has filed a post-facto intimation with BSE Limited disclosing the outcome of its Eighth Committee of Creditors (CoC) meeting held on April 22, 2026. The disclosure was made under Regulation 30 read with Clause 16(f) & (g) of Para A of Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015.

Eighth CoC Meeting: E-Voting Outcome

The e-voting for the Eighth CoC meeting of Quadrant Televentures Limited was conducted and concluded in accordance with Regulation 26 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. All resolutions put to vote were decided by the Committee of Creditors with a voting approval percentage of 66.17%. The following table summarises the resolutions voted upon and their outcomes:

Voting Item No.: Voting Item Required (%) Approved (%) Decision 6A Extension of timeline for submission of resolution plans till May 16, 2026 51% 66.17% Approved 6B Refund of EOI deposit to one of the prospective resolution applicants 51% 66.17% Approved 8 Approval of disposal of equity shares by secured lenders 66% 66.17% Approved 9 Approval of appointment of professional 51% 66.17% Approved 10 Approval of CIRP cost 51% 66.17% Approved 11 Ratification for short notice period of minimum 24 hours 51% 66.17% Approved

Key Highlights of the Resolutions

Among the resolutions approved, the extension of the timeline for submission of resolution plans to May 16, 2026 (Voting Item 6A) is particularly significant as it directly impacts the progress of the insolvency resolution process. Notably, Voting Item 8, concerning the disposal of equity shares by secured lenders, required a higher voting threshold of 66% compared to the standard 51% required for other resolutions, and was approved with 66.17% of votes in favour.

Disclosure and Compliance

The intimation was filed by Umesh P. Srivastava, CFO & Company Secretary of Quadrant Televentures Limited, on May 8, 2026. The company's corporate office is located at B-71, Phase-VII, Industrial Focal Point, Mohali-160055, Punjab, while its registered office is situated at Plot no. 66, CIDCO N2, Near Kamgaar Chowk, behind Synergy Hospital, Chhatrapati Sambhajinagar (earlier Aurangabad), Maharashtra-431003, India. The filing was addressed to the Secretary, BSE Limited, Operations Department, Mumbai, as part of the company's ongoing regulatory disclosure obligations during the CIRP.

We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better.

Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians.

As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. Most screening, trading, investing platforms available today are more or less similar to each other, and they have not evolved with time. While both traders & investors have gotten smart about how they make money and build wealth, as users they have continued to use the same products, features, and platforms that were available for years with little or no innovation.

We plan to change that - a technology-led and artificial intelligence enabled platform built for super traders and long term investors.

Disclaimer:

The data and information provided on this website is for general informational and research purposes only. While we strive to ensure that the content is accurate, up-to-date, and reliable, this platform utilizes artificial intelligence (AI) tools to generate, curate, and summarize information. As such, the content may occasionally contain errors, omissions, or outdated information. All users are therefore advised to cross verify the source of the data and information.

This website does not constitute professional, legal, financial, medical, or any other form of licensed advice. Users are encouraged to independently verify any information before relying on it, especially for decisions that may have legal, financial, or personal consequences.

The views, analyses, and summaries presented on this platform may be generated or assisted by AI and do not necessarily reflect the opinions of the website owners, operators, editors, or affiliates.

We make no warranties or representations, express or implied, regarding the completeness, accuracy, reliability, suitability, or availability of the information contained on this website. Any reliance you place on such information is strictly at your own risk.

This website may include links to third-party sources or content. We do not control or endorse the nature, accuracy, or availability of those external sites and are not responsible for any content or damages arising from their use.

By using this website, you acknowledge and agree that the use of AI-generated content involves inherent limitations, uncertainties and inaccuracies, and you accept full responsibility for how you interpret and use the information provided.

We reserve the right to modify, update, or remove content and this disclaimer at any time without prior notice.