Quadrant Future Tek secures SEBI nod for ₹275 Crore IPO

Quadrant Future Tek Limited has received final approval from the Securities and Exchange Board of India (SEBI) to raise ₹275 crore via an initial public offering (IPO). Established in 2015, the company specializes in rail safety technologies and manufacturing specialty cables for the defense and railway sectors. Quadrant's revenue surged by 46.56% in FY2023, fueled by increased sales.

Based in Mohali, the company submitted its IPO application to SEBI on June 2, 2024. Known for its research-driven approach, Quadrant Future Tek is developing advanced train control and signaling systems, enhancing the safety and reliability of railway services. The company also operates an electron beam irradiation center and produces irradiated/E-beam cables.

Quadrant serves key sectors like defense and railways, offering specialty cables for naval defense and railway rolling stock. The firm’s production plant also manufactures solar and electric vehicle cables. Its Railway Signaling & Embedded System Design Centers are located in Bengaluru, Karnataka, Hyderabad, and Telangana, while production is headquartered in Basma, Mohali. By December 31, 2023, Quadrant derived 74.05% of its revenue from wires and cables in the railway sector and 25.08% from defense-related products.

IPO Details : The IPO will consist entirely of fresh equity shares, with each share having a face value of ₹10, amounting to a total of ₹275 crore. The funds raised will be allocated as follows: ₹175 crore for long-term working capital, ₹25 crore for the development of the Electronic Interlocking System, ₹25 crore for partial repayment of outstanding loans, and the remainder for general corporate purposes. Sundae Capital Advisors Private Ltd is the sole book-running lead manager, and Link Intime India Private Limited is the registrar.

Financial Performance : Quadrant's revenue from operations grew by 46.56% in FY2023, reaching ₹152.80 crore, up from ₹104.26 crore in FY2022, driven by stronger sales to the railway and defense sectors. The company's profit after tax also saw a significant increase, rising from ₹1.94 crore in FY2022 to ₹13.90 crore in FY2023. For the nine months ending December 30, 2023, Quadrant generated ₹100.37 crore in revenue, with profit after tax reaching ₹14.42 crore.

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