Shares of software security solutions provider Quick Heal Technologies made a weak stock market debut today, falling 5 per cent in opening trade over the issue price of Rs 321.

The stock listed at Rs 304.95 on the BSE, down 5 per cent from the issue price. Later, it saw some recovery and climbed 2.78 per cent to touch the day’s high of Rs 329.95, but soon reversed the gains and hit the day's low of Rs 246. It closed 20.73 per cent lower at Rs 254.45.

On the NSE, the company debuted at Rs 305, loss of 4.98 per cent. It hit a high of Rs 330 and a low of Rs 245.60 during the day's trade. It closed at Rs 250.20, down Rs 54.80 or 17.97 per cent.

It commands a market valuation of Rs 2,125.76 crore.

The company’s Rs 451 crore IPO, which closed on February 10, was subscribed 11 times at a price band of Rs 311-321 per share.

In the IPO, the portion set aside for qualified institutional buyers (QIBs) was subscribed 4.34 times, retail investors saw 3.8 times subscription and the non-institutional investors category was subscribed by 36.7 times.

While the proceeds from the offer of sale will not go to Quick Heal, the Rs 250-crore funds raised from fresh issue of equity shares will be used by the company for advertising and sales promotion and capital expenditure for research and development.

Quick Heal, which provides software security products and solutions in India, said proceeds will also be invested to purchase, develop and renovate its office premises in New Delhi, Kolkata and Pune as well as for general corporate needs.

Related Topics