Quadrant Future Tek Secures Rs 130.5 Crore from Anchor Investors Before IPO Launch

Quadrant Future Tek has secured over Rs 130 crore from anchor investors, as announced on Monday. This funding comes just before the company's initial public offering (IPO) opens for public subscription. The investors include WhiteOak Capital Mutual Fund, Kotak Mutual Fund, LIC Mutual Fund, Bank of India Mutual Fund, Citigroup Global Markets Mauritius, Ashoka WhiteOak ICAV, Bengal Finance and Investments, Shubhkam Venture I Pvt Ltd, and Capri Global Capital.

The company has allocated 45 lakh equity shares to 22 entities at Rs 290 per share. This price is the upper limit of the set price band, bringing the total transaction value to Rs 130.50 crore. The IPO will be available for public subscription from Tuesday to Thursday, with a price range of Rs 275-290 per share. The entire Rs 290-crore IPO is a fresh issue with no offer for sale component.

Funding Allocation and Company Operations

The funds raised will address long-term working capital needs and capital expenditures for developing an electronic interlocking system. Additionally, proceeds will help in debt repayment and general corporate purposes. Quadrant Future Tek focuses on research and development of advanced train control and signalling systems under the KAVACH project by Indian Railways, ensuring high safety and reliability for passengers.

Quadrant also operates a speciality cable manufacturing unit with an electron beam irradiation centre. These cables are used in railway rolling stock and the Naval Defence industry. As of September 30, 2024, the facility had an installed capacity of 1,887.60 metric tonnes.

IPO Management and Listing Details

Sundae Capital Advisors is managing the book-running process for this IPO, while Link Intime India serves as the registrar. Quadrant Future Tek's shares will be listed on both BSE and NSE following the completion of the IPO process.

The company's strategic focus on innovation in train control systems aligns with its broader goals in enhancing rail safety. Its speciality cables division further supports key industries like railways and defence, showcasing its diverse capabilities in manufacturing and technology development.