Sequoia backed-Quick Heal Technologies files for IPO

The firm is looking to raise `250 crore through the IPO, according to the draft red herring prospectus

Mumbai: Quick Heal Technologies Ltd, which makes security software products and solutions, on Wednesday filed its draft initial public offering (IPO) papers with capital markets regulator Securities and Exchange Board of India (Sebi).

The firm is looking to raise 250 crore through the IPO, according to the draft red herring prospectus (DRHP) available on the website of the investment banks hired by it to manage the issue.

ICICI Securities Ltd, Jefferies India Pvt. Ltd and JP Morgan India Pvt. Ltd are managing the IPO.

Venture capital firm Sequoia Capital, which invested 60 crore in the company in 2010, is looking to dilute 4.6% of its shareholding in the company through the offer for sale, as part of the IPO. It currently holds a 10.25% stake in the company. The promoters too will dilute around 6.5% of their holding, bringing the total promoter stake to around 83% post the offer.

The firm sells its security products under the brands Quick Heal and Seqrite for desktop, laptop, smartphone and network security and data loss prevention.

Since its incorporation, more than 24.5 million licences of its products have been installed, and as of 30 June 2015, the firm had over 6.9 million active licenses spread across more than 80 countries, according to the DRHP.

According to the prospectus, Quick Heal plans to spend 111 crore on advertising and sales promotion (over a period of three years). It also plans to spend around 42 crore as capital expenditure on research and development and another 30 crore for buying and upgrading office premises.

For the fiscal year 2014-15, Quick Heal reported a revenue of 292.5 crore, compared with 253.7 crore the previous year. It reported a profit of 56 crore in 2014-15 as compared to 61.5 crore a year ago.

So far this year, 15 firms have raised about 6,348 crore through IPOs, according to data from Prime Database, a capital markets tracker.

This is already more than the entire sum raised in the last two years. In 2014, five firms raised 1,201 crore through IPOs, data from Prime Database shows. In 2013, three firms raised 1,284 crore.

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