Multibagger IPO: SME stock Quicktouch Tech allots 3.2 lakh warrants

SME stock Quicktouch Technologies, an IT services company, garnered attention on Friday after the board approved the conversion of 3.2 lakh warrants into equity shares. The move has sparked renewed interest in the stock, which has delivered multi-bagger returns since last year's listing despite some recent corrections.

On Thursday, September 12, 2024, the company's board of directors announced that they had approved the allotment of 3,20,000 equity shares following the conversion of 3,20,000 warrants. The conversion was completed at an issue price of ₹196.17 per share, including a premium of ₹186.17, under the non-promoter/public category on a preferential basis. The total amount received for this conversion was ₹4.70 crore, with ₹147.128 per warrant being paid, representing 75 per cent of the issue price.

Stock Performance and Multibagger Returns

During Friday’s trade, shares of Quicktouch Technologies were up by 1 per cent, trading at ₹160.20. Nearly 40 lakh shares were traded during the session, reflecting strong investor interest following the warrant conversion news. The stock continues to be in focus as investors evaluate the potential impact of the increased equity base and the company's future growth prospects.

Quicktouch Technologies, listed in May 2023 on NSE's SME platform, has made multi-bagger gains since its ₹61 IPO price, climbing over 162 per cent to trade around ₹160. The company's IPO, which raised ₹9.33 crore, was open for subscription in April 2023 and saw strong demand. Despite its stellar post-IPO performance, the stock has faced some headwinds, declining over 19 per cent in the last year and 2024 year-to-date.

However, the SME stock has shown signs of recovery in recent months. In September, it gained over 4 per cent, continuing its positive trend for the fourth consecutive month. The stock rose 5 per cent in August, 21 per cent in July, and 2 per cent in June, following a sharp 38 per cent decline in May. Earlier in the year, the stock saw corrections in February and March, but January witnessed a 10 per cent gain.

Details of the Warrant Conversion

Quicktouch Technologies confirmed the allotment of equity shares on the conversion of warrants to non-promoters and public investors in a regulatory filing. These warrants, issued under SEBI's ICDR Regulations 2018, had an initial payment of ₹49.042 per warrant, representing 25 per cent of the issue price. The remaining 75 per cent, or ₹147.128 per warrant, was paid upon conversion, allowing holders to receive equal equity shares.

As a result of this conversion, the company's issued and paid-up capital increased to ₹6.64 crore, consisting of 66,43,796 equity shares of Re 10 each. The new shares will rank pari-passu with the company's existing equity shares.

Quicktouch Technologies has delivered impressive returns since its IPO but has also faced periods of volatility. The recent conversion of warrants into equity shares marks a significant development for the company, further strengthening its capital structure. As the stock continues its recovery, investors remain keen on the company's future trajectory in the highly competitive IT services sector.