Quadrant Future Tek Limited, based in Mohali, has received final approval from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO). The company plans to raise ₹275 crore through this IPO, with documents submitted to SEBI on June 2, 2024. Founded in 2015, Quadrant Future Tek is a research-driven firm specializing in advanced train control and signaling systems, which enhance rail passenger safety and reliability. Additionally, the company operates an Electron Beam Irradiation Centre and a facility for manufacturing irradiated or E-beam cables.
The IPO will involve issuing new shares with a face value of ₹10 each, aiming to raise the total of ₹275 crore. The funds will be used for various purposes: ₹175 crore will address long-term working capital needs, supporting ongoing operations and growth. Another ₹25 crore will be allocated to developing an Electronic Interlocking System, essential for improving train safety and efficiency. Additionally, ₹25 crore will be used to repay part of an existing working capital loan, reducing the company’s debt and improving financial stability. The remaining funds will be allocated for various general corporate activities.
Before investing, it is important to conduct thorough research on the company. This involves understanding its financial health, market position, and growth prospects. Investors should review the company’s performance, its plans for using the funds raised through the IPO, and any potential risks involved. This careful analysis will help in making informed investment decisions.
This IPO is a significant move for Quadrant Future Tek Limited, allowing it to secure substantial funds for its projects and expansion plans. It also offers investors a chance to buy shares in the company, potentially benefiting from its future growth. As the IPO opens for subscription, it is expected to attract considerable interest due to the company’s innovative focus and its critical role in the rail industry. The shares will be listed on a stock exchange once the IPO process is completed.
