Quick Heal lists its share on stock exchanges

Quick Heal Technologies which raised Rs 451 crore through its Initial Public Offering (IPO) is set to list its shares on stock exchanges on Thursday. It is one of the fastest growing Information Technology (IT) Security and Solutions Company. The equity shares will be listed on the NSE as well as on the BSE. 

The IPO, which closed on February 10, was over-subscribed 11 times at a price band of Rs 311-321 per share. The IPO consisted of fresh issue of Rs 250 crore and an offer for sale of about 62.70 lakh equity shares by promoters. In the IPO, the portion set aside for Qualified Institutional Buyers (QIBs) was subscribed 4.34 times; retail investors saw 3.8 times subscription; and the non-institutional investors category was subscribed by 36.7 times of the value. Quick Heal had raised Rs 133.9 crore y issue of shares to 10 anchor investors. 

Quick Heal intends to use the IPO proceeds primarily for advertisement and sales promotion activities, renovation of office premises in Pune and other cities. Company also plans to increase their spending on research and development of new products and services, as the success of the organization mainly depends upon innovative products and solutions. Going further, part of the proceeds would also be used for general corporate purpose. 

For the five year ending FY15, total revenue of the company has grown at CAGR of 22 per cent and was Rs 294.33 crore at the end of FY15. Quick Heal derived more than 97 per cent of its revenues from the domestic markets and less than 3 per cent from overseas operations. For the fiscal year ending FY15, EBITDA was Rs 91.8 crore showing a CAGR of 13.07 per cent for a five-year period. For the five-year period ending FY15, profits augmented by CAGR are of the order of 9 per cent. Quick Heal remains a debt free firm, however over the period of one year the company has witnessed pressure on its margins, mainly owing to higher employee related expenses. 

Further it is a leading provider of security software products and solutions with a market share of over 30 per cent in the retail segment in India according to an industry report.  The stock opened at Rs 304.95 on BSE.