Quadrant Future Tek IPO shares: Check latest GMP ahead of stock market listing

Shares of Quadrant Future Tek are set to make their Dalal Street debut on Tuesday, January 14 and the company is likely to deliver a healthy listing pop at the bourses. However, investors should trim their listing-pop expectations considering the recent correction in its grey market premium amid the rising selling pressure in the broader markets.

Ahead of their listing, shares of Quadrant Future Tek were commanding a grey market premium (GMP) of Rs 120 apiece, signaling more than 41 per cent listing pop for the investors. However, the premium in the unofficial market stood around Rs 210 when the issue was open for subscription.

Quadrant Future Tek has a Strong historical growth, but recent half-year results have been negative, said Shivani Nyati, Head of Wealth at Swastika Investmart. "The IPO generated a significant investor interest, with a strong subscription of 195 times Given the financial performance and the potential risks, this IPO may suit high-risk investors with a long-term investment", she said.

The IPO of Quadrant Future Tek ran for subscription between January 07 and January 09. It had sold its shares in the price band of Rs 275-290 per share with a lot size of 50 shares. The Mohali-based company raised a total of Rs 290 crore from its IPO, which was entirely a fresh share sale of 1,00,00,000 equity shares.

The issue was overall subscribed a stellar 186.66 times. The portion for qualified-institutional bidders (QIBs) was subscribed about 132.54 times. The portion for non-institutional investors (NIIs) was booked 254.71 times, while the allocation for retail investors was booked 246.94 times during the three-day bidding.

Quadrant Future Tek attracted significant investor interest and it is expected to have a strong debut with a 50 per cent premium above the upper band price, indicating high investor confidence, said Abhishek Pandya, Research Analyst at StoxBox. "We suggest that investors who have been allotted shares consider holding their positions from a medium to long-term perspective," he said.

Incorporated in September 2015, Mohali-based Quadrant Future Tek develops next-generation train control and signaling systems for the 'KAVACH' project of Indian railways, enhancing safety and reliability for passengers. It also has a specialty cable manufacturing facility with an Electron Beam Irradiation Centre.

Brokerage firms were mostly positive on the issue, suggesting to subscribe to it for long-term. Sundae Capital Advisors is the book running lead manager of the Quadrant Future Tek IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.