Monitoring Agency Report for the Quarter ended June 30, 2025 in respect to Utilization of Funds raised through Initial Public Officer (IPO) by the company
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CARE Ratings, the monitoring agency, confirms that Quadrant Future Tek has used Rs. 168.38 crore of the Rs. 290 crore IPO proceeds raised in January 2025, with Rs. 121.62 crore still unutilized and parked mostly in bank fixed deposits. Fund usage is split across issue expenses (Rs. 18.66 cr of Rs. 29.22 cr), specialty cable working capital (Rs. 75.78 cr of Rs. 149.72 cr), loan repayment (Rs. 23.61 cr of Rs. 23.62 cr), general corporate purposes (Rs. 50.33 cr of Rs. 63.06 cr), and zero spending so far on the Rs. 24.38 cr Electronic Interlocking System project. The agency flagged no deviation from stated objects but noted delays of about 3 months in deploying FY25 working capital funds, and that the EIS project has not begun pending product certification. The company also reported net losses of Rs. 19.68 crore in FY25 and Rs. 13.50 crore in Q1FY26, mainly from the Train Control (Kavach) division, where invoicing is awaiting product approval.
No deviation from IPO objects is a positive sign for investors, but delays in deployment and continued losses in the Kavach division raise concerns about execution and earnings visibility. Shareholders should watch for product certification updates, as the unutilized Rs. 121+ crore sits in FDs rather than being deployed into growth projects.