Quadrant Future Tek Limited
Quadrant Future Tek Limited
QUADFUTURE
₹13,750/-
Min. Investment
50/- Shares
IPO Listing Details
Listed On
14-Jan-2025
Issue Price
₹290.00
Listing Price
₹ 370.00
Listing Gains
₹ 80.00 (+27.59%)
Min. Investment
₹ 13,750 /-
Apply Dates Range
07 Jan 25 – 09 Jan 25
Price Range
₹ 275 – ₹ 290
Lot Size
50
Issue Size
2,900.00Cr
Quadrant Future Tek Limited
Quadrant Future Tek Limited is an innovative company that specializes in the development of next-generation Train Control and Signaling Systems, ensuring high levels of safety and reliability for rail passengers. Additionally, the company operates an irradiated/E-beam cable manufacturing facility equipped with an Electron Beam Irradiation Centre. Quadrant Future Tek offers a diverse range of products and solutions across four key verticals: End-to-End Solutions in Train Control & Signaling, Specialty Cables, Cable Assemblies & Interconnect Solutions, and Electrical/Electronic Systems & Displays.
| Founded In | September 18, 2015 |
| Industry Type | Manufacturing of E-beam cables and Train Controls |
| Managing Director | Mohit Vohra |
| P/E Ratio (post) | 103.69 |
| Price-to-Sales Ratio | 13.39 |
| EBITDA | ₹34.52 crore |
| Return on Equity | 33.35% |
| Revenue Growth | -1% |
| Earnings per Share | ₹4.90 |
| Free Cash Flow | — |
| Debt-to-Equity Ratio | 1.85 |
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Corporate Background
Incorporated on September 18, 2015, as ‘Quadrant Cables Private Limited,’ the company underwent a name change to ‘Quadrant Future Tek Private Limited’ on October 8, 2021, and was subsequently converted into a public limited company named ‘Quadrant Future Tek Limited’ on October 21, 2021. The company’s registered office is located in Village Basma, Tehsil Banur, Distt Mohali-140 417, Punjab, India.
Business Operations
The company’s manufacturing operations are based in Basma, Mohali, with additional Railway Signaling & Embedded System Design centers in Bengaluru, Karnataka, and Hyderabad, Telangana. Quadrant Future Tek’s competitive edge lies in its technology-driven approach, operational efficiency, stringent quality control measures, and experienced professionals who specialize in embedded systems design and development, enabling indigenous solutions.
Key Products and Markets
Quadrant Future Tek focuses on producing specialty cables for railways rolling stock and naval (defense) industries. Their manufacturing capabilities also extend to solar cables and EV cables. The company serves significant sectors such as the railways and defense industries, contributing substantially to their revenue streams. For instance, 48.33% of their revenue for the nine months ended December 31, 2023, came from the railways sector, while 25.08% was attributed to the naval (defense) industry.
Financial Performance
The company has demonstrated robust financial performance over recent years. Key financial highlights include:
- Total Revenue: ₹729.72 million (FY20), ₹728.70 million (FY21), ₹1,054.24 million (FY22), ₹1,530.80 million (FY23)
- EBITDA: ₹105.31 million (FY20), ₹111.68 million (FY21), ₹97.19 million (FY22), ₹263.51 million (FY23)
- PAT (Profit After Tax): ₹56.24 million (FY20), ₹71.18 million (FY21), ₹16.32 million (FY22), ₹130.70 million (FY23)
Board of Directors and Promoters
The Board of Directors includes notable figures like Satish Gupta (Independent Chairman), Mohit Vohra (Managing Director and Promoter), and Pramod Jain (Independent Director). The promoters of the company are Mohit Vohra, Amit Dhawan, Amrit Singh Randhawa, Rupinder Singh, Vishesh Abrol, Vivek Abrol, Aikjot Singh, and Rajbir Singh Randhawa.
Strategic Objectives
Quadrant Future Tek aims to utilize the net proceeds from its Initial Public Offering (IPO) towards several strategic objectives:
- Funding long-term working capital requirements.
- Capital expenditure for developing an Electronic Interlocking System.
- Repayment or prepayment of outstanding working capital term loans.
- General corporate purposes.
Regulatory Compliance and Approvals
The company complies with various regulatory frameworks and holds necessary licenses and approvals essential for its operations. It adheres to guidelines set by the Ministry of Railways and Indian Railways, among others. Quadrant Future Tek maintains transparency and ensures compliance with SEBI regulations and other statutory requirements.
Risk Factors
Investors should be aware of potential risks associated with investing in Quadrant Future Tek, including dependence on government policies, market competition, and economic fluctuations. The company acknowledges these risks and continuously works on mitigating them through strategic planning and operational excellence.
Future Prospects
Looking ahead, Quadrant Future Tek plans to expand its footprint both domestically and internationally. With a strong focus on research and development, the company aims to introduce cutting-edge technologies and solutions that cater to evolving market needs. By leveraging its expertise and expanding its product portfolio, Quadrant Future Tek is poised for sustained growth and success in the coming years.
In summary, Quadrant Future Tek Limited stands out as a technologically advanced enterprise committed to delivering superior products and solutions in the railway and defense sectors. Its solid financial foundation, experienced leadership, and strategic vision position it well for future growth and market leadership.
Shareholding Pattern
As of 25 Feb'25, 02:31 PM
| Category | Before IPO % (pre-issue) | After IPO % (post-issue) |
|---|---|---|
| Promoters | 93.33% | 70.00% |
| Promoter’s Group | 0.00% | 0.00% |
| Public | 6.67% | 30.00% |
| Total | 100.00% | 100% |
Promoter Holding Details
Total Promoter Holding: The Promoters collectively hold 2,52,00,000 shares, which is equivalent to 84.00% of the pre-issue equity.
| Promoter | Shares | Equity % |
|---|---|---|
| Mohit Vohra | 37,50,000 | 12.50% |
| Amit Dhawan | 37,50,000 | 12.50% |
| Amrit Singh Randhawa | 40,50,000 | 13.50% |
| Rupinder Singh | 57,00,000 | 19.00% |
| Vishesh Abrol | 23,25,000 | 7.75% |
| Vivek Abrol | 23,25,000 | 7.75% |
| Aikjot Singh | 15,00,000 | 5.00% |
| Rajbir Singh Randhawa | 18,00,000 | 6.00% |
| Total (Promoters) | 2,52,00,000 | 84.00% |
Pros
Experienced Promoters and Management: The company is led by experienced promoters and a qualified senior management team with significant experience in the railways sector and manufacturing industry. Mohit Vohra, the Managing Director, has over 26 years of experience
Focus on Innovation and Technological Development: The company focuses on innovation and technological development, particularly in building Automatic Train Protection Systems, giving them a competitive edge
Advanced Manufacturing Facilities: The company possesses advanced manufacturing facilities with a diverse range of power and control cables, emphasizing innovation and cost competitiveness
Primary Business in Growing Sectors: Quadrant Future Tek operates in the railway and defense sectors, which are expanding, especially with government support for railway infrastructure and indigenous defense manufacturing
Quality and Reliability: The company emphasizes product quality and has approvals as a vendor, which are critical for securing new business, especially from government organizations in the railway sector
Cons
Limited Number of Customers: A significant portion of the company’s revenue comes from a limited number of public and private sector customers, including group companies, making them dependent on these relationships. The top ten customers account for a large percentage of the revenue
Competition: The company faces competition in both its specialty cables division and the train control systems division. Competitors in the E-beam cables sector include Apar Industries Limited and Polycab India Limited
Tender-Based Contracts: The company’s contracts are primarily tender-based, lacking long-term purchase agreements with customers, which introduces uncertainty in future revenues11. Government companies scrutinize bidders for technical and financial qualifications
No Long-Term Agreements with Suppliers: The company does not have long-term agreements with suppliers for input materials. Increases in the cost or a shortfall in the availability of these materials could adversely affect the business
Outstanding Litigation: There are criminal proceedings against the Directors and Promoters. Although the cases pertain to a single incident of a road accident, it may still be a concern for investors
Most Ask Questions?
What is the business of Quadrant Future Tek Limited?
Quadrant Future Tek Limited is involved in developing train control and signaling systems and manufacturing specialty cables, including irradiated/E-beam cables
Where is the company’s registered office located?
The registered office is located at Village Basma Tehsil Banur, Distt Mohali – 140 417, Punjab, India
Who are the promoters of Quadrant Future Tek Limited?
The promoters are Mohit Vohra, Amit Dhawan, Amrit Singh Randhawa, Rupinder Singh, Vishesh Abrol, Vivek Abrol, Aikjot Singh, and Rajbir Singh Randhawa
What is the purpose of the IPO?
The company proposes to utilize the net proceeds from the IPO towards:
▪ Funding long-term working capital requirements6.
▪ Capital expenditure for the development of an Electronic Interlocking System6.
▪ Prepayment or repayment of outstanding working capital term loans6….
▪ General corporate purposes
On which stock exchanges will the equity shares be listed?
The equity shares are proposed to be listed on BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE)
What is the KAVACH project, and how does it impact the company?
KAVACH is an indigenous Train Collision Avoidance System developed by Quadrant Future Tek Limited under the guidance of Indian Railways’ Research Designs & Standards Organisation (RDSO). The company has received a prototype approval and technical clearance for deploying its systems across a 43.6 km stretch of railway track. Successful execution of this project could lead to more orders and strengthen the company’s position in the train control systems market.
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer. The author has no business relationship with any company whose stock is mentioned in this article.