Quick Heal IPO though expensive is an attractive bet

MUMBAI: The initial public offering of Quick Heal Technologies, which will open on February 08, has set the price band at Rs 311-321 per share. The company has raised Rs 134 crore through issue of 41.70 lakh equity shares to 10 anchor investors at Rs 321 apiece, the upper end of the price band, ahead of its IPO.

The anchor investors include Driehaus Emerging Markets Smallcap Growth Fund, Nomura India Stock Mother Fund, BNP Paribas Advantage and Jupiter India Fund, ICICI Prudential Mutual Fund, Birla Sun Life Insurance, Reliance Mutual Fund, among others. Analysts said, however, the issue is expensively valued for those looking to make listing gains.

IIFL

At the upper end of the price band, the issue is priced at 40 times FY15 PE, which is expensive as compared to its global peers such as Symantec and SAP SE. Though the IPO may not be exciting for short-term listing gains but will deliver superior returns over the longer period.

Ashika Stock Broking

The experienced senior management quality, strong financial, healthy cash flow and return ratios together with the expected dividend payout of 25-30% in the future is expected to reward the shareholders in the short run.

Sushil Finance

At the price of Rs 321, though the P/E is at 46 times with diluted EPS, we feel that future growth potential from the enterprise software is promising. When compared to global peers such as Trend Micro or AVG, the valuations, though slightly steep, look justified.