Quadrant Future Tek’s initial public offering (IPO) has been a huge success among retail and high-net-worth investors. The IPO, which closes today, has been subscribed 48.99 times so far.

Retail investors, the most aggressive, saw their portion reserved for them was subscribed 137.22 times.

The ₹290-crore offer, which is entirely a fresh issue, comes out with a price band of ₹275-290.

Investors can bid for a minimum of 50 shares and in multiples of 50 equity shares thereafter. Shares will be listed on the BSE and the National Stock Exchange.

The issue is being made through the book-building process, wherein not less than 75 per cent of the issue would be available for proportionate allocation to qualified institutional buyers, 15 per cent for non-institutional investors, and up to 10 per cent for allocation to retail investors.

The quota reserved for QIB received bids 0.46 times, while HNIs’ quota saw heavy participation 87.22 times.

Anchor investors

Quadrant Future Tek garnered ₹130.50 crore from anchor investors on Monday as part of the IPO exercise. The company informed the exchanges that it allocated 45 lakh shares at ₹290 a share to foreign and domestic institutional anchor investors.

Among those who participated in the anchor book were Citigroup Global Markets Mauritius Private Limited, Capri Global Capital Limited, Shubhkam Ventures, Whiteaok Mutual Fund, LIC Mutual Fund, Kotak Mutual Fund, Bank of India Mutual Fund, Bengal Finance and Investment Private Limited, PGIM India, Sundram Alternative, and others.

Utility of funds

The funds raised will be used to fund the company’s long-term working capital requirements: Specialty Cable Division (₹149.70 crore); capital expenditure for development of the Electronic Interlocking System (₹24.40 crore); prepayment or repayment of all or a portion of outstanding working capital term loans (₹23.6 crore); and general corporate purposes.

Quadrant Future Tek Ltd is a research-oriented company developing next-generation Train Control and Signalling Systems under the KAVACH project for the Indian Railways. It also operates a specialty cable manufacturing facility with an Electron Beam Irradiation Centre, producing cables for railway rolling stock and the naval defence industry. The facility supports the end-to-end production of Solar and EV cables and includes areas for manufacturing, testing and developing specialty cables and hardware for the Train Control and Signalling Division.

Sundae Capital Advisors Private Limited is the sole book-running lead manager, and Link Intime India Private Limited is the registrar of the issue.