1.Company Information
Quadrant Future Tek Limited is an India-based company engaged in the development of new-generation train control and signalling systems and the manufacturing of specialty cables. The company's operations are concentrated in a single facility located in Village Basma Tehsil Banur, Distt Mohali.
Quadrant Future Tek Limited: Business Overview
The company has two primary business divisions:
1) Specialty Cables Division: This division manufactures specialty cables designed for industrial applications with high demands for fire safety, lightweight construction, and long-term performance.
2) Train Control & Signalling Division: This division focuses on developing and implementing advanced train control and signalling systems, primarily for the Indian Railways' KAVACH project.
Products and Services
Here's a breakdown of their product portfolio, including percentage contributions to revenue:
Specialty Cables Division:
1) Wires and Cables (Railways): These cables are specifically designed for use in railway rolling stock and constitute a significant portion of the company's revenue.
Revenues from Indian Railways (through Zonal railways, their divisions, and production units) contributed 37.10%, 47.36%, 48.27%, and 53.95% of total revenue from operations for the six months ended September 30, 2024, and the fiscal years ended March 31, 2024, 2023, and 2022, respectively.
Sales to private railway suppliers and contractors contributed 54.19%, 29.66%, 25.51%, and 43.10% of total revenue from operations for the respective periods.
2) Wires and Cables (Defence): Quadrant supplies specialty cables to the Naval (Defence) industry, including Public Sector Undertakings (PSUs). These cables contributed 2.86%, 22.24%, 24.16%, and 2.92% of total revenue from operations for the six months ended September 30, 2024, and the fiscal years ended March 31, 2024, 2023, and 2022, respectively.
Solar Power Industry, Electric Vehicles, and Other Industries: The company also manufactures cables for solar power installations, electric vehicles, and other industries. However, revenue contributions from these sectors are comparatively smaller.
Train Control & Signalling Division:
KAVACH Train Control System: Quadrant has developed the KAVACH Train Collision Avoidance System, which has received prototype approval and technical clearance for deployment in certain sections of the Indian Railways.
The company has received orders for the deployment of its KAVACH equipment, and this segment is expected to grow in the future.
Manufacturing Facility
All manufacturing, testing, research, and development activities are housed in a single facility located in Village Basma Tehsil Banur, Distt Mohali.
Key Clients
Indian Railways is Quadrant's primary client, accounting for a substantial portion of its revenue. The company supplies specialty cables and KAVACH train control systems to various divisions and units within the Indian Railways. Quadrant also serves clients in the Naval (Defence) industry, supplying specialty cables.
Key Countries
Quadrant's operations and primary customer base are concentrated in India.
2. Strenghts
The Company proposes to utilise the Net Proceeds from the Issue towards the following objects:
- Funding long-term working capital requirements of the Company;
- Capital expenditure for the development of Electronic Interlocking System;
- Prepayment or repayment of all or a portion of outstanding working capital term loan availed by the Company; and
- General corporate purposes.
3. Objects of the Issue
The Company proposes to utilize the Net Proceeds towards funding the following objects:
1) Funding of capital expenditure requirements of the Company towards the purchase of machinery and equipment.
2) Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the Company and investment in the wholly owned Material Subsidiary, S2 Engineering Industry Private Limited, for repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by S2 Engineering Industry Private Limited, from banks and financial institutions.
3) Investment in the wholly owned Material Subsidiary, S2 Engineering Industry Private Limited, for funding its capital expenditure requirements towards purchase of machinery and equipment.
4) Funding inorganic growth through strategic investments and/or acquisitions.
5) General corporate purposes.
4.Quadrant Future Tek Limited IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: quadrant.ipo@linkintime.co.in
Website: https://linkintime.co.in/Initial_Offer/public-issues.html