Quick Heal rallies over 7% after weak debut; still trades below issue price

NEW DELHI: A day after a disastrous debut, Quick Heal Technologies rose a little over 7 per cent in morning trade on Friday. The stock had fallen as much as 20% in debut trade on Thursday. The stock still trades below its issue price of Rs 321.

At 09:45 am; Quick Heal pared some of the gains but was still trading 5% higher at 268. It hit a low of Rs 242 and a high of Rs 272.70 so far in trade today.

Sentiment was nervous on news that Manohar Malani of NCS Computech, an erstwhile distributor of Quick Heal, complained to Sebi that he, along with his family members, has a huge stake in the company, but the information has not been disclosed by the company, said an ET report quoting brokers.

"These factors (fraud charges) are going to remain as an overhang on to the stock. I think we will have to wait for clarity on what the management has to respond to these factors," said Mayuresh Joshi, Fund Manager, Angel Broking.

"However, if you look at the core fundamentals and the financials, if I may put it that way, I think it is still a market leader within the retail IT services industry," he added.

However, Quick Heal has rubbished the claims made by Malani. The company said they had stopped business ties with NCS in 2014 on account of outstanding dues, said an ET report.

The IPO prospectus of Quick Heal said it had filed cases against NCS alleging cheating, criminal breach of trust and dishonouring of cheques.