• Quadrant Future Tek, a company developing new-generation Train Control and Signalling Systems, has announced its IPO.
• The company plans to use the proceeds from the IPO for working capital, developing an Electronic Interlocking System, and repaying existing loans.
• Quadrant Future Tek shares are expected to list with a gain of about 62.07 per cent.
• The IPO market in India is active, with companies from diverse sectors making their debut and investors showing keen interest.

Quadrant Future Tek, a research-oriented company involved in developing new-generation Train Control and Signalling Systems for Indian Railways, has recently announced its Initial Public Offering (IPO). The company, which also operates a Specialty cable manufacturing facility with an Electron Beam Irradiation Centre, has set the minimum bid for investors at 50 shares and in multiples thereof. Retail investors are required to invest a minimum of Rs 14,500, while small non-institutional investors must invest in at least 14 lots or 700 shares, totaling Rs 2.03 lakh. Big non-institutional investors, on the other hand, must invest in at least 69 lots or 3,450 shares, amounting to Rs 10 lakh.

The allocation of the issue will be done through the book-building process, with 75 per cent of the issue being allocated to qualified institutional buyers (QIBs), 15 per cent reserved for non-institutional investors (NIIs), and up to 10 per cent available for retail individual bidders. The company has outlined its plans for the proceeds from the fresh issuance. Rs 149.72 crore will be directed towards meeting the long-term working capital requirements of the Specialty Cable Division, Rs 24.37 crore will be used for capital expenditure to develop an Electronic Interlocking System, and Rs 23.62 crore will go towards the prepayment or repayment of existing working capital term loans. The remaining amount will be utilized for general corporate purposes.

Quadrant Future Tek's Market Position and Future Plans

Quadrant Future Tek shares were commanding a premium of Rs 180 in the unlisted market as of January 6, at 5:04 AM. With the price band set at Rs 290, the estimated listing price for the IPO is Rs 470, according to investorgain.com. This means investors could see an expected listing gain of about 62.07 per cent. The company is actively working on creating a train collision avoidance system and an electronic interlocking system under the KAVACH initiative, which serves as an automatic train protection system aimed at enhancing safety and increasing capacity on Indian railways.

The IPO market has seen a flurry of activity in recent times. For instance, the IPO of NTPC Green Energy was fully subscribed on the third and last day of the bidding process, thanks to the last day interest from the institutional bidders. The company, promoted by NTPC under Ministry of Power, is a renewable energy company that focuses on undertaking projects through organic and inorganic routes. Similarly, Swiggy, India 's second-largest app in Food Delivery, Quick Commerce, and Out-of-Home services, made a decent debut on the bourses with its shares listing at a premium of 7.7 percent over the issue price.

Recent IPO Trends and Market Response

Garuda Construction and Engineering Ltd, which offers comprehensive civil construction services, also made its debut in the primary market. The company's revenue from operations and profit after tax showed a Compound Annual Growth Rate (CAGR) of 26% and 25% respectively. Premier Energies Limited, a prominent player in the solar energy sector, also went public. The company's promoters hold a 72.23 per cent stake, while the public owns 26.12 per cent. The company operates out of five state-of-the-art manufacturing facilities in Hyderabad and Telangana.

Brainbees Solutions, which offers products for mothers, babies, and kids via its online platform 'FirstCry', also launched its IPO. The company aims to create a one-stop store for parents' retail, content, community engagement, and education needs. Sanstar, a leading manufacturer of maize-based specialty products and ingredient solutions in India, saw its IPO subscribed 75x on Day 3. The company has demonstrated consistent growth in both revenue and profit over the years. Awfis Space Solutions, a workspace solution provider in India, also saw its IPO booked 68 times. The company offers a wide range of flexible workspace solutions, catering to the needs of individuals, start-ups, SMEs, and large corporations.