On the third and final day of its initial public offering (IPO), Quick Heal Technologies was oversubscribed nearly 10 times. With its shares priced between Rs 311-Rs 321 a piece, the software security service provider plans to raise Rs 450 crore.
Qualified institutional buyers (QIBs) and high net-worth individuals (HNIs) subscribed to the issue heavily on the final day of the IPO as they subscribed nearly 4.34 times and 36.69 times respectively.
Out of the 29.03 lakh shares reserved for their quota, QIBs bid for 126 lakh shares while HNIs bid for 21.22 lakh shares out of the 778 lakh shares reserved for their category. Retail investors bid for nearly 182 lakh shares out of the 49.52 lakh shares offered to them, subscribing nearly 3.76 times.
The public offer includes an issue of fresh shares worth Rs 250 crore and an offer for sale of up to 62.7 lakh shares as private equity firm, Sequoia capital, would be making a partial exit from the company.
In a pre-IPO placement, where shares were allotted at Rs321 per share, the company had raised close to Rs 133.9 crore through its anchor investors including BNP Paribas Advantage, Reliance Mutual Fund and Nomura India Stock
The book running lead managers of the issue are ICICI Securities, Jefferies and JP Morgan. The company reported a revenue growth of 16.9% CAGR, though it showed a fall in its profitability with Rs54 crore in FY15 compared to Rs 68crore in FY12.
The funds raised from the fresh issue of shares would be used for advertising, sales promotion and capital expenditure for research and development by the company.
It would also be using the proceeds to purchase, develop and renovate its office premises in Kolkata, Pune and New Delhi.