Quadrant Future Tek IPO to list on Tuesday; here’s what GMP signals ahead of debut | Stock Market News
Source: Live Mint
The IPO of Quadrant Future Tek, which concluded recently, will see its shares debut on the Indian stock exchanges on Tuesday, January 14. As the Quadrant Future Tek IPO listing date approaches, investors’ focus has shifted to the potential listing gains, typically judged by looking at the grey market premium (GMP).
Ahead of the listing, the company’s shares are commanding a healthy GMP of ₹140, as per the market sources. Considering the IPO’s upper price band of ₹290 and the current grey market premium, the estimated listing price of Quadrant Future Tek stands at ₹430 apiece, 48.27% above the IPO price.
The grey market premium reflects investors’ willingness to pay more than the issue price.
The mainboard IPO, valued at ₹290 crore, was open for subscription from January 07 to January 09, 2024. It was priced in the range of ₹275 and ₹290. The shares are set to list on both BSE and NSE platforms.
The issue is entirely a fresh issue of 1 crore shares, which attracted a healthy response from investors, achieving an overall subscription rate of 195.96 times.
Non-institutional investors’ portion was subscribed 268 times, while the retail investors’ portion was booked 256 times, and the qualified institutional buyers’ portion was subscribed 139.77 times, according to the exchange data.
The company proposes to utilise the net proceeds from the issue towards funding long-term working capital requirements of the company, capital expenditure for the development of the electronic interlocking system, prepayment or repayment of all or a portion of the outstanding working capital term loan availed by the company, and general corporate purposes.
About Quadrant Future Tek
Quadrant Future Tek is a research-oriented company engaged in developing new-generation train control and signalling systems that offer the highest level of safety and reliability to rail passengers and also possess an irradiated/e-beam cable manufacturing facility with an electron beam irradiation centre.
The company offers specialty cables for railways, rolling stock, and the naval (defense) industry. The manufacturing facility of the company also possesses end-to-end infrastructure capabilities for the production of solar cables & EV cables.
The manufacturing operations of the company are based in Basma, Mohali, and the Railway Signalling & Embedded System Design Centre at Bengaluru, Karnataka, and Hyderabad, Telangana, as per the company’s DRHP report.
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