Quick Heal Technologies to raise Rs 250 Cr through IPO

Quick Heal Technologies, one of the prominent security solution companies, has announced to raise Rs 250 crore through its IPO which will open on February 08, 2016. The company has put a price cap of Rs 311-321 per share. The launch will hit the market on 8th February and will close on 10^th February, 2016.

“Quick Heal Technologies Ltd will hit the capital markets with its IPO on February 8, 2016 with a price band of Rs 311 to Rs 321 per equity share of face value of Rs 10 each,” reads the statement of the company.

The IPO consists of a fresh issue of Rs 2,500 million by the Company and an offer for sale of up to 6,269,558 equity shares by promoters Kailash Katkar and Sanjay Katkar, apart from Sequoia Capital India Investment Holdings III and Sequoia Capital India Investments III.

According to the officials, the company will be utilising 250 crore funds raised from the IPO in its marketing and advertising campaign, sales promotion and capital expenditure for research and development. Apart from that, part of the funds will also be used to purchase, develop and renovate its office premises in Kolkata, Pune and New Delhi, as well as general corporate needs.

ICICI Securities Limited, Jefferies India Private Limited, and J. P. Morgan India Private Limited are the Book Running Lead Managers while Link Intime India Private Limited is the registrar. The offer would constitute of the Company’s post-issue paid-up equity share capital and the net offer would constitute of its post-issue paid-up equity share capital. Quick Heal’s equity shares are proposed to be listed on the BSE and the NSE.

According to the company’s draft red herring prospectus, Quick Heal reported a revenue of Rs 292.5 crore, compared with Rs 253.7 crore the previous year. It reported a profit of Rs 56 crore in 2014-15 as compared to Rs 61.5 crore a year ago. The company had planned for an IPO in 2014 it was delayed for over a year due to legal compliances.

Focus on Seqrite Brand

Quick Heal launched a range of its Enterprise Security solutions under the brand name Seqrite a year ago. The company intends to gain the market share in the enterprise space in 2016. In an exclusive interaction with the DQ Week, Abhijit Jorvekar is an Executive Director and Senior Vice President – Sales and Marketing revealed company’s marketing and channel strategy to increase the brand presence in the enterprise space.

“Since we have launched our enterprise range of products under the brand of Seqrite, our major focus has been on the SMB segment. Going forward in 2016, we will focus on tapping the business potentials in the large enterprises. We have created a separate channel and sales team and separate partner programs for the enterprise business. On the marketing front, we have been participating in various trade shows to promote our enterprise range of products. I believe this will definitely benefit us to gain the visibility in the enterprise space”, said Jorvekar.

Jorvekar said that Quick Heal would shortly launch its IOT based security solutions. “We have initiatives in the IOT space and we are working on IOT security solutions. We also see a big role for us in some of the government projects like Smart Cities. We are able to bring few big government customers on board through DGS&D rate contract and we will continue to focus on the big government accounts.”

Started out in 1993 as CAT Computer Services (P) Ltd by Kailash Katkar, founder and MD and Sanjay Katkar, CTO, Quick Heal Technologies is the well known domestic anti-virus player. As per the market estimates, the company has 30 percent market share in the consumer space. Around 70 percent of Quick Heal’s revenue comes from the retail business and rest from commercial and corporate accounts.