Shares of Quick Heal Technologies slumped more than 22% on the listing day following the media reports that Securities Exchanges Board of India (Sebi) had received a complaint against the company. The complaint alleges that Quick Heal did not disclose its entire shareholding details in its initial public offering (IPO) prospectus. The stock closed at Rs 254.45 apiece in the BSE — Rs 6.55 lower than the issue price of Rs 321.
The complaint is learnt to have been filed by Mumbai-based investor Manohar Malani who alleged that his family members were allotted more than 15,000 shares in the company during the year 2000 and this allotment was not disclosed in the DRHP.Sources told FE that the complainant was a distributor of the company’s products in Mumbai and had loaned some money to Quick Heal in return of allotment of the shares.
“Sebi is already looking into the matter and depending on verdict of the regulator, Quick Heal will decide its future course of action,” said one of the investment bankers who was a part of the public issue adding that the company has already sent a defamation notice to Manohar Malani.
The company has however has denied the allegations. “Mr Malani and others were never allotted shares by the company at any point in time and documents submitted by Mr. Malani in this regard do not match with the statutory registers and other records of the Company, including audited financial statements of the relevant period,” the company said in a statement.
The stock performance was also affected by a service tax notice received by Quick Heal from Central excise intelligence on Thursday. The company received Rs 56 crore tax demand from the I.T officials along with interest amount for a period from March 2011 to March 2014.
Quick Heal’s debut was the worst in more than three years, data compiled by the Prime Database showed. Last company to post declines on the listing day was Coffee Day Enterprises. Shares of Coffee day fell more than 17% on the listing day, data showed.
Quick Heal’s stock opened at Rs 304.95 — about 5% lower than its issue price and soon touched a low of `246 intra-day, stock exchanges data showed. More than two crore shares changed hands across the exchanges during the session, Bloomberg data showed.
Quick Heal Technologies raised a little more than Rs 450 crore from the primary markets through the IPO.