13-Jun-2024
2 mins read
Quadrant Future Tek Limited filed a DRHP and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 275 Crore of equity shares. The face value is reported as Rs. 10 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. So, when will the IPO come? The Application for public issue and subscription opening/closing dates and other important dates will be declared soon. At the same time, the public issue price band at which you can bid will be declared soon.
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About the Company
Quadrant Future Tek is a research-oriented company developing next-generation train control and signalling systems to ensure top safety and reliability for rail passengers. The company operates an Electron Beam Irradiation Centre, producing specialized E-beam cables for the railway, naval, solar, and EV industries. The state-of-the-art facilities in Basma, Mohali, and design centres in Bengaluru and Hyderabad support the innovation-driven approach. The company have speciality cables that offer superior mechanical and thermal properties, essential for high-performance applications. Accredited with national and international certifications, they offer efficiency, quality control, and a talented team driving the indigenous solutions.
Objectives of the Public Offering
The funding allocation for the company is planned as follows: the allocation of Rs 175 Cr towards funding long-term working capital requirements. Rs 25 Cr will be directed towards capital expenditure for the development of the Electronic Interlocking System to improve technological capabilities. Further, they have planned to prepay or repay a portion of the outstanding working capital term loan in the amount of Rs 25 Cr. For general corporate purposes, the amount utilized does not exceed 25% of the gross proceeds, maintaining a balanced approach to their financial management. Keep in mind the mentioned figures are estimated values based on DRHP filed by the firm.
Financials of the Company
In the period ended March 31, 2023, the company's assets increased to Rs 118.82 crore from Rs 112.77 crore in the previous year, which shows a growth of 5.4%. Revenue for the year ended March 2023 was Rs 152.80 crore, showing an increase of 46.6% from Rs 104.25 crore in the previous year. The profit after tax rose to Rs 13.90 crore from Rs 1.94 crore in the previous year, with an increase of 615.7%. Whereas total borrowing decreased to Rs 73.99 crore from Rs 80.68 crore, a reduction of 8.3%
Key Performance Indicators
Key performance indicators of the company reported a return on net worth of 46.96% and a profit after-tax margin of 29.10 %. Keep in mind the stats for the fiscal year that ended March 2023. If we look at the EBITDA margin, it is reported as 17.37% for the same FY.
Lead manager(s), Registrar of IPO & Promoters of the Company
The IPO is managed by Sundae Capital Advisors Private Limited, which is the book-running lead manager of this public issue. Link Intime India Private Limited has been appointed as the registrar for the issue, while the company promoters are Mohit Vohra, Amit Dhawan, Amrit Singh Randhawa, Rupinder Singh, Vishesh Abroland Vivek Abrol, Aikjot Singh and Rajbir Singh Randhawa.
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