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Antivirus maker Quick Heal Technologies will be raising up to ₹462 crore through an initial public offering starting February 8, valuing the company at close to ₹2,000 crore. The shares will be offered in a price band of ₹311-321 an equity share of face value ₹10 each.
Promoters to shed stake The company will be raising ₹250 crore fresh capital through the offering and will also offer up to 62 lakh shares worth about ₹212 crore , which will be sold by promoters Kailash Sahebrao Katkar and Sanjay Sahebrao Katkar, and the company’s private equity investor Sequoia Capital. Sequoia Capital, which currently holds 10 per cent equity in the company, will retain 7 per cent after the IPO, company CFO Rajesh Ghonasgi said.
Declining profits “The IPO will help us create value for our employees and allow us to push further into the enterprise market. We would also be looking at small-time acquisitions to improve our technology capabilities with the help of the IPO proceeds,” Quick Heal Managing Director and co-Founder, Sanjay Katkar, told BusinessLine .
The company, which started as a calculator repair firm before creating the brand Quick Heal in 1995, has seen revenues grow 15 per cent in FY15 to ₹292.2 crore. However, profits have consistently declined over the last three years. In FY13, net profits stood at ₹77.5 crore, which dropped to ₹61.5 crore in FY14, and further to ₹56.2 crore in FY15. Kailash Katkar said the decline was due to the company’s increased R&D spend in the last three years.
“In the last three years, we’ve launched many new products with the help of our R&D efforts. While this has led to increase in revenue, we’ve maintained lower margins to ensure we are investing for the future,” Kailash Katkar said. The company said it will use the proceeds of the sale to invest in advertising, R&D and for buying new offices in Kolkata, Pune and New Delhi. The minimum bid lot will be of 45 shares and in multiples of 45 equity shares thereafter and will be listed on both the BSE and the NSE. The offer will be open from February 8-10.
ICICI Securities, Jefferies India and JP Morgan are the bankers to the issue.
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