Whats buzzing for Quick Heal Technologies?

Quick heal technologies is up by almost 6 percent on Monday at the time of filing this post and trading at Rs. 229 when the index is struggling to trade in green.In its letter today to both the bourses BSE & NSE where the stock is listed, Quick Heal Technologies as an update has informed investors of an arrest made by the police of Manohar Malani, CEO and MD of NCS Computech Limited, Kolkata.

FIR was lodged by Quick heal technologies on 23rd Feb against accused Mamohar Malani and others with the Shivaji Nagar police station, Pune for cheating,forgery and criminal intimidation under various sections of the Indian Penal Code.

Incorporated in 1995, Quick heal technologies in Pune is a leading IT security solutions company. The company enjoys almost 30 percent market share in the retail segment in India.  The company raised 451 crores through it IPO in the month of February this year.  While the listing process was in progress, Manohar Malani had complained to SEBI that the company had not disclosed the complete details of the shareholders and claimed that he had been allotted 20000 shares of Quick Heal Technologies in the year 2000. Malani in a written complain explained that the 20000 shares bought in 2000 is now working out to be substantial stake in the company in its current form and the company in its information filing has not even mentioned the name of true shareholder. Quick heal management has always maintained that the documents highlighted by Malani claiming to be a shareholder of Quick Heal Technologies are ‘forged’.

The recent development of Malani being arrested is welcome news for the stock. The stock with a market capitalisation of Rs.1,603 crores is trading at 29 P/E multiples higher than its peers like NIIT technologies and KPIT technologies.