The initial public offering (IPO) of software security service provider Quick Heal Technologies (QHTL) was subscribed nearly 0.77 times on the second day of the issue. The shares are priced between Rs 311 and Rs 321 apiece.
Retail investors bid nearly 1.38 times or 68 lakh shares of the allotted 49.52 lakh shares. The issue received 7.78 lakh bids from qualified institutional buyers (QIBs) who subscribed nearly 0.27 times on day two of the public offering.
High net-worth individuals (HNIs) subscribed to only 2 lakh shares out of the 21 lakh shares allotted to their category. Over 101 lakh shares were on offer in total.
The book running lead managers for the IPO are ICICI Securities, Jefferies and JP Morgan.
The company plans to raise Rs 450 crore through the public issue which comprises an issue of fresh shares worth Rs 250 crore and an offer for sale of up to 62.7 lakh shares as Sequoia capital, private equity firm, would be making a partial exit from the company.
In a pre-IPO placement through anchor investors, the company had raised close to Rs 133.9 crore through its anchor investors including BNP Paribas Advantage, Reliance MF and Nomura India Stock Mother Fund and the shares were allotted at Rs 321 per share.
An IPO note issued by Aditya Birla Money said QHTL was one of the leading providers of security software solutions in the country with more than 7.1 million users and a 30% market share in the retail segment.
Moreover, it has strong sales network, R&D capabilities and high brand visibility. “In light of QHTL market leadership position, business strategy, and growth prospects, we value QHTL at 25 times FY18E earnings, thereby giving a fair value of Rs 343 per share,” the note said.